In late October, the Wisconsin state government passed a law requiring health insurance companies to cover people under 27 years of age on their parents’ health plans, even if those children are not attending school.
Gov. Jim Doyle announced the bill’s passing back on Oct. 29, according to the Milwaukee Journal Sentinel.
Professor of political science James Simmons discussed how he viewed the law from a public policy standpoint. He predicted that the entire law would have a “marginal” effect upon insurance in the state. He noted that “(people in their twenties are) an age group that is generally healthy and usually not at risk, so I would expect a modest increase in the cost of insurance.”
Professor of economics Kevin McGee said this age group is least likely to be diagnosed with cancer, so insurance companies will not need to sharply increase premiums in order to cover this demographic.
On the other hand, Simmons said that the insurance companies affected by this policy may use this to justify increased premiums beyond their expense of providing the extra coverage for the families who’ve bought into health insurance.
Regardless, Simmons said that the new law was “a positive step.”
“Increasingly young adults are not entering the workforce until later and later in life,” Simmons said.
Part of the delay can be attributed to college attendance and part to the difficulty inherent in finding a job in this economy.
McGee predicted that the new policy won’t really affect job search decisions.
“Nobody gets a job just because of health insurance,” McGee said. “You get a job because you want income, because you don’t want to live with Mom and Dad anymore.”
Explaining the difficulties involved, McGee pointed out that job seekers might not be able to start their job, because of the lack of employer health insurance.
Insuring people of college age may encourage young adults to take job offers that they would have otherwise not considered.
McGee also agreed with Simmons that the new law would increase insurance premiums.
“I doubt that (the companies will) cut back coverage particularly,” McGee said. “They may cut back their willingness to pay for that coverage. So they might raise their rates somewhat, or raise things like deductibles and co-payments, either which decrease their cost and increase the cost of the people who are insured.”
McGee still insisted that we’re not going to notice the increase in cost any more than families have noticed the increases in healthcare spending over the last few years.
Both professors said that this sort of law is needed for the young people of Wisconsin; however, UW-Oshkosh students Chase Granzow and Hannah Schoechert were skeptical of the bill.
Schoechert said that the bill should apply only if you’re in school, otherwise young people would be taking advantage of their parents’ health care.
Despite acknowledging potential beneficial aspects of the law, Granzow agreed and said, “College is where you’re supposed to be mooching off your parents.”
Once the bill is put into legal force, anyone under 27 might become better insured thanks to their parents.
Until then, Oshkosh students are fortunate to have access to both their parents’ insurance plans and the health services available on campus.
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