Health Insurance Articles
Health Insurance Options For New College Graduates
2009-11-21
Congratulations. You're graduating. After 16-plus years of school, you're done, a degree in your hand and your future ahead of you. You're looking forward to a new job, a new career, a new life. You're leaving behind homework, college life, old friends ... and, unfortunately, health insurance.
Millions of young Americans find out quickly that graduation is not all about moving boldly ahead. In many states, graduating from college means no more health care coverage through your parents. Without parental coverage, studies show that nearly one-third of college graduates will be uninsured in the first year after graduation. The same group of new grads also tends to go without needed medical attention - mainly due to the cost. Sure, landing a job with insurance is the goal. But landing any job in a tough economic climate is difficult.
So what to do? First, check the laws in your state. Some states require your parents' insurance cover you for several years after the cap and gown are gone. If that isn't the case where you live, you're still likely eligible for COBRA. This is often expensive health care coverage, but if you have an existing condition, it may make sense to continue where you are. Another way to continue is through a student health-insurance policy - but it must be issued prior to graduation, and if you've already graduated, you won't be eligible. Typically you'll have to do this a few months prior to walking. If your break is temporary - and you'll be going on to a post-graduate degree - consider speeding up and getting core classes out of the way now. That way, your parents can continue to cover you. Or you can qualify for a student health insurance coverage policy.
If you fit none of these scenarios, you can also consider a short-term health insurance policy. There are limitation to these - such as exclusions for pre-existing medical conditions, and typically no prescription drug allowances. Plus, authorizing any procedures is often more difficult than standard insurance authorization. Despite the negatives, short-term healthcare coverage will at least give you some form of health insurance while you hunt for a job, along with a form of permanent insurance. You'll usually have to do with a six or twelve-month policy, which, if cancelled early, will often get you a refund. But, typically, the policy can be renewed for as long as you need it. Just research the best one for you, since most policies have a built-in delay prior to kicking in, meaning you may be paying premiums, but aren't covered yet. At any rate, you've done the hard part by finishing school. So congratulations.
