New state health insurance law begins

APPLETON - The idea of being "on your own" after college is changing for some young adults.

A new state law is allowing parents to put their kids on their insurance plans until they turn 27. Governor Doyle signed the emergency rule in October to help young people, who can't afford insurance. Sheila Jenkins is President of Network Health Plan, which is part of Affinity Health System. She says the law creates an inexpensive way to insure young people.

"It's a very efficient, effective way of providing coverage to young adults, but it also places a higher insurance premium burden on the employers who are paying most of the coverage," said Jenkins.

To be eligible, young adults need to be single, and not eligible for insurance through their employer. Or, they also have to prove that their parents' plan would cost them less than the plan offered where they work.

"I think it's just an added cost that the consumer has to pay today that we didn't have to pay back in December," said Gordon Lenz, of GH Lenz & Associates.

Lenz has been in the insurance business for 46 years. He says when mandates like this go through, everyone ends up paying more.

"I don't think it's as beneficial as they say, there could be a few exceptions and there always are," said Lenz.

Northeast Wisconsin Technical College has been preparing for the change for months. Officials say 1500 people are insured through the school. So far, 24 new adult dependents have been added.

"Our actuaries said there's no indication right now it's going to cost the plan more, we'll just have to see how it goes," said Debbie Kolar, Director of Benefits at NWTC.

The final cost will depends on how many parents put their kids on their plans and how much premiums will go up may not be seen for some time.