Are Adopted Children Covered by Family Health Insurance?

The adoption of a child can often present complications when attempting to add the child onto a family's health insurance plan. However, according to federal law, insurance companies are generally required to treat adopted children identically to biological children, extending them the same rights and protections. However, some types of insurance plans are covered by state law, under which protection varies by jurisdiction.

History

• According to the Baby Center website, prior to 1993 insurers had the right to discriminate against adopted children. Insurance companies could delay the extension of coverage until the adoption was finalized in court or deny coverage for preexisting conditions. However, a federal law passed in 1993 stated that all group health care plans must treat legally adopted children identically to biological children and could not push the beginning of coverage to an arbitrary date.

Exceptions

• Health insurance plans that are not issued by an employer, such as individual plans, are governed by state, not federal laws. Although many laws have their own regulations in place designed to offer the same protection for adopted children under individual plans as those extended under employer-sponsored plans, many do not. For families who purchase policies directly from insurers, the extent of coverage depends on state law.

Considerations

• In general, common-law adoptions are not recognized by insurance companies. A child's adoption must first be legally recognized before an insurance company will recognize the child as adopted.

Birth Expenses

• Legally, a couple wishing to adopt a child cannot insure the child until he has been born, as they cannot demonstrate that the adoption is certain to go through. According to the Department of Labor, an agreement to pay the birth expenses is not enough to demonstrate to an insurance company that the adopting family is willing to take on legal responsibility for the child.

Solution

• According to the financial reference website Financial Web, if a parent is temporarily unable to add an adopted child to her health care plan through complications, she may purchase a temporary insurance policy for the child to make up for the gap in coverage. This plan will likely be more expensive than adding the child to the family plan and should only be purchased for a short period of time, no more than six months.