A New York insurer has agreed to reinstate health coverage for up to 8,300 children who were dropped from their parents’ policies before they turned 30.
Under an agreement with the state attorney general, EmblemHealth Inc. also said it will pay approximately 175 claims for about $90,000 for unreimbursed medical treatment.
While federal law authorizes keeping children on their parents’ health insurance until they turn 26, New York requires insurers to offer continuing coverage until age 30. The agreement signed this week also requires EmblemHealth to pay the attorney general $100,000 as a civil penalty.
EmblemHealth covers 3.4 million New Yorkers through GroGHI Health Insurance Plan of Greater New York. The investigation showed it failed to send letters to more than 8,000 members from 2010 to 2012 notifying them of their rights to buy continuing coverage for their offspring, while 1,000 were never notified coverage had been terminated.