Hospital Income Likely to Rise as Youths Stay on Parents’ Insurance Longer

A provision of the health reform law to bump up coverage for dependent children to age 26 will reduce uncovered ED visits and raise the rate of covered hospitalizations among this group, according to a report from the National Bureau of Economic Research.

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The new provision, which takes effect in September, would apply to an estimated 2 million eligible young adults, a group with a very low rate of insurance.

Reviewing inpatient and ED records in seven states, researchers found that young adults who lose their insurance showed a 40 percent increase in ED visits and a 61 percent decline in inpatient hospital admissions.

Read the National Bureau of Economic Research’s report on insurance coverage.

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