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MVP Health Care Eliminates Potential Health Insurance Coverage Gap for Many Young Adults

Proactive measure will help parents keep their children insured until new provisions of health care reform law take affect

Schenectady, NY (Vocus) April 27, 2010 -- MVP Health Care announced today that it is taking steps to prevent a gap in health insurance coverage for many young adults in New York, Vermont and New Hampshire.

MVP’s action means that dependents up to age 26 who are currently covered on their parents’ health benefit plans will retain their coverage until the dependent coverage provisions of Federal health care reform take effect beginning in September.

Each year, especially around June following college graduations, many young adult college students who have been covered on their parents’ health insurance plans through student waivers "age off" their parents’ policy. Federal Health care reform legislation, signed into law last month, addressed this issue by extending the dependent age for coverage to 26. This new law, however, applies to policy renewals after Sept. 23, 2010. As such, many dependents would have faced a coverage gap during the months before this provision is fully implemented, which could take as long as a year in some cases.

"This is the right thing to do, and it is something we can do now,” said David W. Oliker, MVP Health Care President and CEO. “Realizing that this component of health care reform legislation would not be phased in for several months – after many young people lose their coverage because of their age, student status, or other factors – we concluded that it was vital to close this gap and extend coverage.”

“By making this change in advance of the law, we can ensure that many young people who are currently covered on their parents’ plans are able to hold on to their coverage and access the care they need,” said William Little, MVP Health Care vice president for Vermont.

“Protecting access to quality, affordable health care benefits for our members is always a priority,” said Chris Henchey, MVP executive vice president and Chief Operating Officer. “Thousands of young adults are set to graduate from college over the next few weeks throughout New York, Vermont and new Hampshire, and we’re pleased to be able to continue to offer them coverage.”

Founded in 1983, MVP Health Care is a regional, not-for-profit health insurer based in Schenectady, N.Y. Through its operating subsidiaries, it provides fully insured and self-funded employer health benefits plans, dental insurance, and ancillary products, such as flexible-spending accounts, to 750,000 subscribers in New York State, Vermont and New Hampshire. For more information, visit: MVP Health Care.


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