Payroll and Benefits Office 18422 Bear Valley Rd.

(760)245-4271, x 2252 (760)951-8506 fax Victorville, CA 92395

October 11, 2010 Bulletin No. B10 - 02

TO: All Benefits- Eligible (enrolled) Employees

SUBJECT: How Health Care Reform Affects Your Children’s Medical Coverage

Updated information provided by Southern California School Employee Benefits Association (SCSEBA,) our partner for Anthem Blue Cross and Kaiser Permanente benefits:

As part of the federal health care reform legislation, the Patient Protection and Affordable Care Act (PPACA), dependent coverage under group health plans will be extended to adult children who have not reached age 26, regardless of their full-time student, IRS dependency, or marital status. These new requirements for coverage generally go into effect for plan years beginning on or after September 23, 2010.

What This Means for Your Adult Children

You will be able to cover your adult children as dependents under your SCSEBA medical* plan until they reach age 26. Your child will not have to be a full-time student or an IRS dependent and may be married (although you may not add your child’s spouse or children to your coverage).

Ø  If your adult child who is currently enrolled as your dependent would normally lose medical coverage (due to age or a change in full-time student, dependent, or marital status) before June 30, 2011, that child will automatically stay enrolled in the plan throughout the 2010-2011 plan year—unless he or she turns 26.

Ø  If your adult child has already lost coverage before July 2010 because he or she reached the age limit, lost full-time student status, was no longer your IRS dependent, or got married, you will have the option of adding that child as a dependent during next spring’s open enrollment period. Your child will then be able to rejoin the medical plan effective July 1, 2011.

How the Timing of This New Rule Affects You

To give insurance companies and employers time to make the necessary changes, the new dependent coverage rule goes into effect when a new plan year starts on or after September 23, 2010 (which is six months after the PPACA was signed into law). The SCSEBA health plans have a July 1—June 30 plan year, which means the first plan year to start after the September effective date begins on July 1, 2011.

Ø  As a gesture of support for our members, SCSEBA will let currently-enrolled dependent children under age 26 stay on the plan, even if they would have become ineligible for coverage during the 10/11 plan year. Adult children under age 26 who have already lost their coverage prior to July 2010 will have to wait until the next open enrollment period to enroll in the plan, as required by the new legislation.

SCSEBA will continue to give us updates as the provisions of the PPACA go into effect. Please be sure to review future bulletins and other notices carefully.

*Note - the new rules apply to medical coverage only; eligibility criteria (IRS dependency or full-time student, under age 25) will still apply to vision, dental, and other voluntary plans.

Sincerely,

Signed, Sheri Nolan Foster

Sheri Nolan Foster

Director, Payroll & Benefits