IRS Provides Guidance Regarding Extension of Health Benefits to Adult Children

May 18, 2010
The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act require group health plans that provide dependent coverage for children to continue such coverage until the child reaches age 26 and excludes such coverage from the employee’s taxable income. This update describes the recent IRS interpretation of this coverage requirement in interim final regulations as well as the tax implications as set forth in IRS Notice 2010-38.