[Congressional Record Volume 140, Number 99 (Tuesday, July 26, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 26, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                     THE FAMILY HEALTH COVERAGE ACT

                                 ______


                            HON. BILL BAKER

                             of california

                    in the house of representatives

                         Tuesday, July 26, 1994

  Mr. BAKER of California. Mr. Speaker, today I am introducing 
legislation to prohibit insurance companies from dropping young adults 
from their parents' family health plan until they reach age 27.
  According to the National Center for Policy Analysis, only a small 
portion of the 15 percent of the population without insurance remains 
uninsured for a long time. Fifty percent regain insurance in 4 months. 
Another 25 percent is insured in 12 months. Only 2 percent of the 
population remains uninsured for 2 years. Furthermore, approximately 40 
percent of the uninsured are under 25 years old. The fact that young 
adults make up such a large percentage of the uninsured speaks to the 
need to fill in the gaps.
  During young adulthood, many individuals either cannot afford health 
coverage or fail to spend their discretionary income for insurance 
since they feel immortal. Insurance companies typically drop coverage 
for children from the family plan once they reach age 18 or they 
graduate from college, leaving too many of these young adults without 
insurance.
  For this reason, I have introduced legislation to ensure that 
insurance companies cannot drop individuals from their parents' family 
health plan until age 27. Providing the child has not married and has 
no dependents, he or she will be able to remain on the parents' family 
plan. My bill will give young people an incentive to retain affordable 
health insurance while helping to ease the unnecessary burden of higher 
health care costs for the rest of us.
  The Family Health Coverage Act is a common sense proposal taking a 
step towards responsibly reforming our health care system. I sincerely 
hope that my colleagues will join me in support of this bill.

                          ____________________