News in brief - Jan. 23, 2012

More young adults have dependent coverage

The number of 19- to 25-year-olds covered as dependents under employer-based health insurance increased by nearly 1 million between 2009 and 2010, says a Jan. 10 report from the Employee Benefit Research Institute. The percentage of this population with such coverage reached 27.7% in 2010, a boost of three percentage points.

The health system reform law requires many health plans to extend dependent coverage to young adults until their 26th birthday. The mandate began in September 2010 but did not take effect until January 2011 for most health plans.

Part of the dependent coverage increase might have been because more young people lost or didn't find jobs and had no access to their own employer-sponsored coverage, the report said. The percentage of 19- to 25-year-olds with their own coverage declined by 2.5 percentage points to reach 17.5% in 2010. Adults older than 25 did not have a similar decline.

The EBRI analysis is available online (www.ebri.org/publications/notes/index.cfm?fa=notesDisp&content_id=4975).

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HHS accuses insurer of unreasonable rate increases

The Dept. of Health and Human Services cited Trustmark Life Insurance Co. for having unreasonable insurance premium rate hikes in five states -- Alabama, Arizona, Pennsylvania, Virginia and Wyoming.

The health system reform law allows for HHS to review -- but not block -- proposed insurance rate increases of at least 10% and determine if they are reasonable. Trustmark had 10 days to post an online reply that justifies the hikes. Trustmark raised rates by 13% in the five states.

Trustmark disagreed with the assessment. "Our premiums are driven by the rising cost and increased utilization of medical services. As a smaller carrier, our loss ratios can vary significantly from year to year, and we take that volatility into consideration," said Trustmark spokeswoman Cindy Gallaher.

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Texas abortion law can proceed, appeals court rules

A state law requiring Texas doctors performing abortions to provide women with ultrasound details can take effect while a legal challenge against the law continues, an appeals court has ruled.

The Center for Reproductive Rights, an abortion-rights group, sued the state in June 2011 over the law, calling it unconstitutional for doctors and patients. The statute mandates that doctors show women seeking abortions ultrasound images, describe the images in detail and play fetal heartbeat sounds.

A district judge granted a preliminary injunction against the law's enforcement in August 2011. A panel of judges for the 5th U.S. Circuit Court of Appeals on Jan. 10 overturned that injunction, allowing the law to go into effect. A district court judge will hear arguments in the case later in January.

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