There is reason for optimism for insured individuals receiving treatment for a mental illness or substance abuse problem. The President just signed into law a bill that was 10 years in the making. It will “require that group health insurance coverage for mental illness and substance abuse be provided on the same terms as coverage for physical illnesses.” Although the bill will not require that mental illness and substance abuse coverage be added to group health plans, it will require that existing coverage for psychological illnesses be no more restrictive than coverage for physical illnesses.

The Bill passed in the House of Representatives by a large margin, and was approved by the Senate. On October 3, 2008, President George W. Bush signed it into law. The act is known as “The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act.” Congress joined the parity bill with the Emergency Economic Stabilization Act, the legislation created to address the economic crisis. The Senate passed the same version of the act earlier in the week.

Whether it’s the current state of the economy, or a maturity difference between the generations, many parents are finding that their children are living at home longer than earlier generations have—and often continue to need the benefits and protections that come with that, including health care coverage under their parents’ medical insurance plans. Now the state of Connecticut has just made it easier for parents to continue providing those benefits and protections to their adult children.

Effective January 1, 2008 in the state of Connecticut, parents will be able to keep unmarried dependents under the age of 26 covered under their own individual or group health plan. Although many health insurance plans already extend coverage for dependents over the age of 18 who are still attending college, the coverage terminates if the child graduates or stops attending school. This situation leaves such adult children and their parents with the difficult decision of choosing whether to pay for more expensive or less than comprehensive coverage, or to risk going without health insurance and paying for medical care as needed, which is always a risky prospect.

With so many children living at home longer, requiring more years to finish school, and facing challenges after graduation in an extremely competitive job market, parents found that the cost of their child’s health care was becoming more and more of a hardship. Although most kids between the ages of 19 and 26 are fairly healthy and don’t anticipate recurring medical expenses, the exorbitant cost of medical care in the event of an unforeseen accident left many parents reluctant to leave their post-college children uninsured. This new Connecticut law will ease the financial burden of obtaining health coverage for adult dependent children.

For more information about state-by-state health insurance coverage for young adults, click here.