Van Hollen Applauds Irs Announcement That Tax-free Employer-provided Health Coverage Is Now Available For Young Adults

Statement

Van Hollen Applauds Irs Announcement That Tax-free Employer-provided Health Coverage Is Now Available For Young Adults

Today Congressman Chris Van Hollen (D-MD), Assistant to the Speaker, issued the following statement on the Internal Revenue Service's (IRS) announcement that tax-free employer-provided health coverage is now available for children until the age of 27. These changes immediately allow employers with cafeteria plans -- plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits -- to permit employees to begin making pre-tax contributions to pay for this expanded benefit, which was passed as part of the health insurance reform.

"A key provision of health care reform allows young adults to remain on their parents' health insurance until the age of 26, and I am pleased the IRS announced today it will be implementing our provision to ensure this coverage will generally be tax-free to the employee. This is exciting news for millions of young adults who previously did not have access to affordable insurance and their parents who will now be able to help their children get health care coverage.

"This announcement comes on the heels of HHS Secretary Sebelius having worked with several major insurance providers to implement this same provision in advance of the start date mandated by law. Congress took the first step by passing the historic health reform bill, and the Obama Administration is working every day to make sure it is implemented quickly and effectively."

Source