Eligibility for Coverage
The University makes it possible for you to cover all of your unmarried children ages 19 through 24 on the UPlan Medical and Dental Program, regardless of student status. For most children in this age bracket coverage will be on a tax favored basis because they will meet IRS dependency requirements. Coverage for other children in this age bracket would not be tax favored. A summary of eligibility is provided below. See Dependent Eligibility Definition for detailed information.
Tax Favored Coverage
Tax favored coverage means that your contributions for UPlan medical and dental coverage are on a pre-tax basis and the value of the University’s contribution is not considered taxable income for you as the employee. The coverage for your unmarried dependent child age 19 through 24 can be tax favored if either one of these requirements is met:
- You provide 50% of your child’s support, or
- Your child is a full-time student (up to but not including the year he/she turns 24), maintains legal residence with you, and does not provide more than 50% of his/her own support.
Non-Tax Favored Coverage
Your unmarried child age 19 through 24 who does not meet either one of the above requirements can still be covered on the UPlan Medical and Dental Program; however, under IRS rules, the value of the University’s contribution will be considered taxable as income to you. In addition to your normal pre-tax employee contributions to cover yourself, your child age 19 through 24, and other eligible family members, you will have “imputed” income added to your paycheck.
For 2008, the imputed income amount is $132.80 for medical coverage and $10.13 for dental coverage per biweekly paycheck. You would have a reduction in your biweekly net pay that could range from about $40 to $60 or more, depending on your income and tax withholding rate.
End of Dependent Eligibility Status
When your child reaches age 25 or if your child marries, dependent status is ended, and your child is no longer eligible to be continued on your coverage.
You have the option to continue coverage for your child under state and federal COBRA Continuation of Coverage provisions for up to 36 months by paying the full cost plus a two percent administrative fee. To request the COBRA instructions and application, contact Employee Benefits within 60 days of the date your child loses eligibility. It is recommended that you elect COBRA continuation coverage early to avoid a disruption in your child’s coverage.
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