Health Insurance Options

Having health insurance is a must – not having it can cripple your finances if you are at the wrong place at the wrong time. It is a shocking statistic that one in five adults between the ages of 19 and 29 do not have health insurance. Even though you might be at the tip of your health… the only thing you can expect from life is for unexpected things to happen…

If you take as an example one small visit to the hospital/ emergency room, it could cost you hundreds to thousands of your hard earned dollars. Add follow up care to that and your bills could soar to unbelievable heights. This is very risky and is also considered bad financial planning – you need to make provisions for those unexpected things in life to succeed.

The thing to watch out for at this age is what disqualifies you from using your parents’ health insurance. Make sure you do not get caught out by a policy that states you are not eligible after you turn a certain age, or once you graduate. In some states, it is required by law to allow the insuring of children until the age of 30 (although someone could argue that no one is a child at 30 – I’m sure many parents still see the baby in all of us).

There are several options for the younger generation to insure themselves against the many hazards that come along with life. If you are about to graduate or are turning a certain age soon, it would be very wise to get health insurance immediately. New health insurance plans usually take a month or two to be fully active – and any problems you might have in that short space of could leave you financially and medically devastated.

The most common way of getting health insurance is through a job. However, considering that there could be a gap between graduation and finding that job, and that might need to be employed at a certain workplace for a set number of months to become eligible for health insurance, it is considered by many to be of paramount importance to get some form of medical cover.

The first option for you is to ask about COBRA. This legislation states that an adult child is allowed to keep their parents health insurance up to 36 months after the insurance deadline has passed. This form of cover can typically cost between $200 and $500 a month in premiums, which is pretty steep. If you are in good health and you are not a smoker, it could make financial sense to go it alone.

There are a number of short term health insurance options specifically made for people who young and finishing graduation. This type of policy can be inexpensive, but may not have the coverage you need and usually tend to leave out basic health services, prescription medicines and limit preventative care.

The other option is to take out a health insurance plan with a high deductible and open an HAS (Health Savings Account) – using it to get tax benefits on money spent on health care. It would also allow you to be covered for major operations and hospital care at very little cost to you. It really does pay to shop around and since you are young, you would be able to get a better deal than others. Use your youth to your advantage and bank on your health!

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