Maryland is poised to join 30 other states in extending dependent coverage to cover adult children under their parents’ health plans, a move one state delegate, who is also a health insurance agent, calls “a no-brainer.”

James Brochin

Sen. James Brochin (D-Baltimore Co.) has filed SB 181, a measure that would raise the qualifying age limit for individual or group health insurance plans from 25 years old to 30 years old for children of those enrolled in plans by non-profit insurers and HMO contracts.

Brochin, who is also a health insurance agent with benefits firm Richard J. Princinsky & Assoc. in Hunt Valley, Md., said the idea did not originate from other state nor from his work. He was at a football game when the 27-year-old daughter of a state delegate bemoaned the fact she could not be on her father’s  plan.

“To me, this seems like a no-brainer,” Brochin told IFAwebnews.com. “I think this is something both parties can get around. We can add 5,000 people [to the rolls of the insured in the state] while also reducing the risk pool and not dragging it down with bad risk. There is clearly good risk here.”

The Senate Finance Committee, however, felt otherwise, recently issuing an unfavorable report on Brochin’s bill by an 8-3 vote.

Brochin said he can understand skepticism about the bill.

“It makes sense, but if you ask an actuarial person or an underwriter who deals with risk and rates and take 25 to 30 year olds into account, they will tell you this is inherently good risk,” he said. “Will you get people who are unhealthy? Sure. But at the end of the day, you will add good risk.”

Brochin added that given current federal debate on health reform, “this shows the need to figure a way to come together on an idea to shrink Maryland’s uninsured population.”

Not all insurance companies agree.

Michael Sullivan, a spokesman for Owings Mills, Md.-based CareFirst said, “In this environment any bill that increases the cost of health care must be seriously scrutinized.

“SB 181 would require insurers to take on additional risk and would necessitate increases in premiums to cover that risk,” he said. “Such a move doesn’t make sense at a time when people are already struggling to afford coverage.”

The League of Life and Health Insurers of Maryland, whose members include CIGNA, Kaiser Permanente and UnitedHealthcare, opposes the bill.

Kimberly Robinson, who represents the group before the General Assembly, says the insurers support expanding coverage, “but the question is whether this is the appropriate mechanism.

“Our concern is the impact on employer-sponsored plans and we share the concern [of CareFirst] regarding increased premium costs,” she said, adding that forcing an employer to contribute more money could lead to stopping coverage if costs raise too much.

Walt Cherniak, a spokesman for Aetna, said the insurer is “very supportive of finding more ways to provide coverage to older dependents” and will work with legislators in Maryland, as did with lawmakers in Pennsylvania and New Jersey.

This story originally appeared in the March 2010 of Insurance & Financial Advisor.