Certain large employers must offer health coverage to their full-time employees and dependents starting in 2015, or they may be required to pay a “shared responsibility” penalty. In order to meet this coverage standard, employers must offer health coverage to employees' dependent children until they attain 26 years of age.
The PPACA's Employer Shared Responsibility provisions use the IRS section 152(f)(1) definition of a dependent child eligible for tax-favored benefits under an employer-sponsored health plan. In general, the term “child” means:
- an individual who is a son, daughter, stepson, or stepdaughter of the taxpayer, including a child who is legally adopted or lawfully placed with the taxpayer for legal adoption
or
- an eligible foster child, defined as “an individual who is placed with the taxpayer by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction
HAP will work with employer groups that wish to amend their definition of dependents. The employer group should indicate the categories of persons for whom it wishes to provide coverage and HAP will review the request to determine the appropriate filing process.
