The Massachusetts Health Care Reform Act, Chapter 58 of the Acts of 2006 as amended, changed the laws to require a broadening of dependent coverage offered by health insurance carriers.
The amendments require that on or after January 1, 2008, carriers with insured health benefit plans that provides for dependent coverage make coverage available for persons “under 26 years of age or for 2 years after the end of the calendar year in which such persons last qualified as dependents, whichever occurs first”.
In some cases the fair market value of coverage provided to dependents who do not meet the IRS definition of a qualified dependent is considered ordinary or “imputed” income and, therefore, subject to federal income taxes as well as FICA tax
A link to the sample certification form outlining both the dependent child eligibility and imputed income requirements in greater details is provided below for your review and consideration. This document can be customized to meet the needs of your company.
Employers should make sure they are in compliance. Please contact us for information or assistance.