It is estimated that over one million college students
are removed from their parent’s medical insurance plans
every year when they complete their college degrees. While
facing a tough job market many of these young adults go without
the much needed coverage due to low income. However, getting
the right health insurance plan is just as important as having
coverage. With the information and tools we provide here at
OnlyInsuranceQuotes.com these new graduates can find the plan
that fits into their budget by offering quotes from up to
eight top quality healthcare insurance plan providers.
While in School - Parent’s Medical Insurance
Plans
Many insurance companies will oftentimes cover children of policy
holders until as old as twenty-six if the child is a college
student. However, this option becomes limited once the student
graduates. There are twenty-five states that allow a graduated
student to remain on his or her parent's policy until a specified
age--New Jersey having the highest age limit.
The Government
Accountability Office (GAO) estimates that between employer-based
healthcare insurance plans, some college-sponsored medical
insurance plans and public health insurance programs that
80% of college students are covered. For more information
about these statistics and what some colleges and states are
doing to increase this amount, visit the GAO's Heath Insurance
report at http://www.gao.gov/new.items/d08389.pdf.
Alternatives and Graduate Options
New graduates may not know the options that are available to
them, but maintaining a health insurance plan is very important
to people at any age. Here are some suggestions about different
options that are available.
- Individual Health Insurance Policies
Because
of the differences in state laws, policies may vary greatly
in their rates dependant upon where you live. Most states
allow insurance companies to be selective of the individuals
they choose to insure, which in turn can mean higher rejection
rates for those with chronic illnesses or at least higher
premiums for smokers or others with high risk attributes.
Maine, New Hampshire, New Jersey, New York and Vermont
are known as "guaranteed issue states" and require that
insurance be available to anyone who needs or wants it
regardless of medical condition. However, because of this,
premiums are often higher for both the healthy and the
unhealthy policy holders.
- Health Maintenance Organizations (HMO)
An HMO is generally less expensive and provides a list of
approved doctors and facilities where medical procedures
and check-ups must take place. Because most newly graduated
young adults will not have developed long lasting relationships
with a specialized physician, having a smaller network of
doctors may be an easy adjustment for them. Preferred Provider
Organizations (PPOs) offer more choices, but higher premiums
accordingly.
- Specialized Youth Policies
Because it is estimated by the Kaiser Family Foundation
that 30% of everyone who is uninsured is between the ages
of 19 and 29, insurance companies are creating more and
more specialized youth medical insurance plans to cover
procedures and the type of care that a young adult is most
likely to use. Because of this, they are able to offer low-cost
options that seem to fit more closely with the needs of
today’s youth. Oftentimes they have higher accident
rate coverage and lower prescription medication coverage.
- Short Term Plans
Short term plans are just what they sound like...short term. They are generally used to help in times when coverage is suspended or not available for periods of less than six months at a time. For example, many times when starting with a new company, insurance benefits are not available for up to 90 days and a short term plans can carry you over until it kicks in. While this type of coverage is typically less than an individual plan, the cost of being a new patient ever six months may outweigh the benefit of the lower cost.
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