Compliance March 21, 2011
KY Kills Adult Children Health Coverage State Tax
March 21, 2011 (PLANSPONSOR.com) – Employees in Kentucky can now buy health coverage for their adult children through their employer’s workplace policy without the employees having to shell out more for state taxes, with the signing of a new bill.
Reported by Fred Schneyer
Business Insurance reported Kentucky Governor Steven Beshear has signed H.B. 255, which conforms Kentucky tax law with the federal health care reform law. The federal law requires employers to extend health care coverage to employees’ adult children up to age 26.
Before the new bill in Kentucky, an employee’s child had to be younger than 19, or 24 if a full-time student, for the coverage to be provided on a tax-free basis, according to Business Insurance.
Similar measures were passed this year in Arizona and Maine, while a bill was approved this month by the California Assembly and is awaiting action in the state Senate, the news report said (see CA Bill Makes Adult Children’s Health Costs Tax Exempt).