News Details

Extends eligibility to adult children of employees in advance of 2011 timeframe

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- Unum (NYSE:UNM) officials announced today that the company is beginning to comply with new health care reform legislation by extending medical coverage eligibility to certain adult children of employees effective May 1.

Although final regulations from the new health care reform legislation have yet to be written, Unum executives decided that extending eligibility to adult dependent children, months ahead of the timeframe outlined in the bill, would benefit a number of employees and their families.

"We understand that this particular change could be advantageous to a number of employees if adopted earlier than 2011," said Eileen Farrar, senior vice president of Corporate Human Resources. "Extending coverage for children graduating this spring will provide continuity, rather than requiring them to cease coverage now only to have them enroll again several months later."

Under medical coverage currently provided to Unum employees, children are covered until they reach age 19, unless they are enrolled in school full-time. These students are covered until they no longer attend classes full-time, or reach age 25, whichever comes first. Under new federal regulations slated to take effect Jan. 1, 2011, health care plans are required to expand eligibility for coverage to employees' children under 26 regardless of their student status, provided they do not have access to coverage through another employer.

Effective May 1, children currently covered under Unum's medical plan will be able to remain on the plan until age 26. Adult children under age 26 who are not currently covered will be eligible to enroll in the medical plan during the company's fall enrollment period for coverage beginning Jan. 1, 2011.

Unum officials stressed that there will be no increases in the cost of health care benefits for employees during 2010 as a result of this change, but that future costs as a result of health care reform are being studied.

"We will carefully evaluate the impact on our plans and make adjustments in 2011 and beyond as required," said Farrar. "For now, this is a simple step we can take that will benefit a number of our employees."

About Unum

Unum (www.unum.com) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum Group provided $5.9 billion in total benefits to customers in 2009.

    Source: Unum