UnitedHealth, WellPoint. give a insurance break to young alums

Two of the nation's biggest health insurers said Monday they will extend coverage for college students graduating this year who are currently on their parents' plans, months ahead of a new federal law requiring them to do so.

UnitedHealthcare said Monday it will allow adults up to age 26 to stay on their parents' employer-sponsored plans if they are currently covered, although the new reform law doesn't kick in until Sept. 23. Its parent, Minnetonka-based UnitedHealth Group, is the nation's biggest health insurer by revenue.

"We want students to graduate to a secure future, not the ranks of the uninsured," said Gail Boudreaux, president of UnitedHealthcare, calling the move "another tangible step we are taking to help translate the new, complex health reform directives into workable reality."

WellPoint Inc. quickly followed suit, saying it too will help close the coverage gap for members. Indianapolis-based WellPoint is the country's biggest insurer by membership.

The goodwill factor

It could be a smart move at a time when health insurers have been vilified by the Obama administration for denying care while making profits.

"The cost increase is going to be really small and it gets them the goodwill of saying, 'We're complying with this thing early,'" said Dave Delahanty, a benefits consultant with Towers Watson in Minneapolis.

Minnesota already requires dependent coverage up to age 25 in the individual and small-group market. Some, though not all, large employers do the same.

"The student population is low-hanging fruit," said Allan Baumgarten, an independent health consultant. "They're young and healthy, you know where they are and the family's covered."

Minnesota insurers said Monday they are looking at the issue. Blue Cross and Blue Shield of Minnesota said it would follow the lead of the national insurers for its members in the individual and small group markets. Medica said it would do so for members in the individual market, according to the Minnesota Council of Health Plans.

The number of people affected in Minnesota is likely to be small, said Eileen Smith, a spokeswoman for the council.