Under the Patient Protection and Affordable Care Act, signed by President Obama on March 23, 2010, and the related Health Care and Education Reconciliation Act of 2010, signed on March 30, 2010 (together, the Health Care Reform Law), group health plans that provide dependent coverage must offer such coverage to adult children who have not yet turned 26 years of age. The Health Care Reform Law also expands the tax-favored treatment of the coverage of adult children under employer-sponsored group health plans. Two pieces of recent guidance -Internal Revenue Service (IRS) Notice 2010-38 issued April 27, 2010, and interim final rules jointly issued by the IRS, Department of Labor (DOL) and Department of Health and Human Services (HHS) released on May 10, 2010, and published on May 13, 2010 - provide plan sponsors with much of the information needed to implement the new mandate and the related changes to the tax treatment of such coverage.

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Source: Health Plans: What's Next? Drinker Biddle's Health Care Reform Update
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