Health Insurance Tips For College Grads

New college graduates in 2011 will enjoy improved prospects in the job market. According to a recent survey sponsored by the National Association of Colleges and Employers, companies nationwide intend to hire 13.5% more grads in 2011 than they did last year¹. However, grads may be shocked when they see how much is taken from their first paycheck to help cover employer-sponsored health insurance premiums. According to the Kaiser Family Foundation, employees who get individual coverage through employers contribute $85 per month on average towards their monthly premiums for HMO-style coverage, while also shouldering an increasing share of their overall health care costs in the form of higher copayments and deductibles².                                            

 

Health Insurance Tips for 2011 College Grads:

 

Know your options before graduation –2011 college grads may be able to choose from among the following coverage options:

• Employer-based health insurance – This is how most Americans get their health insurance, but be sure you understand how your benefits work and how much you’ll be required to contribute towards the cost of your coverage and medical care.
• Individually-purchased health insurance – If you’re young and relatively healthy, individual health insurance coverage can be an affordable option. eHealthInsurance represents over 180 health insurance companies offering thousands of individual health insurance plans nationwide.
• Your parents’ health insurance plan – Health care reform allows adult children to retain coverage under their parents’ health insurance policy until age 26.
• Short-term health insurance – Consider short-term coverage if you expect to have employer-based health insurance within six months and only want basic protection for emergencies.
• Government high-risk pools – This may be an option if you’re declined for coverage on your own due to a pre-existing medical condition.
• Going uninsured – Not really an option: don’t put your financial future on the line by going without coverage!

Check your calculations before staying on Mom and Dad’s plan – One of the most tempting options for many grads is to stick with their parents’ health insurance policy until age 26. Before you do that, however, break out the calculator. Find out how much it costs your parents to keep you on their policy and compare that with quotes from leading health insurance companies in your area to see if it makes more sense to buy coverage on your own.

 

Newfound independence means a new budget – Your new independent life may require you to juggle a lot of new, unfamiliar expenses. It’s a good idea to plan out weekly and monthly budgets for yourself. When you do, be sure to save some space for health insurance. Since costs can vary depending on where you live and what kind of benefits you value most, work with a licensed agent like eHealthInsurance.com to get free quotes for plans in your area. Healthy young adults in many states may be able to find coverage from brand-name insurers for as low as $70 a month³.

 

Understand that the cost of a plan is about more than just monthly premiums – When reviewing quotes from different plans, keep in mind that the real-life cost of any health insurance plan is about more than the premiums you pay each month to maintain coverage. Pay special attention to the annual deductible you’ll be required to meet before your coverage really kicks in, plus copayments and coinsurance. ‘Coinsurance,’ for example, is when you pay a percentage of the bill and the insurer picks up the rest. Some people don’t realize it, but in many cases you’ll still have to pay coinsurance even after your deductible is met.

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¹SOURCE: N.A.C.E, Job Outlook 2011 Fall Preview:

² SOURCE: Kaiser Family Foundation survey of employer health benefits, published September 2010

³ Based on sample quotes generated at eHealthInsurance.com for plans from a selection of carriers and states on December 17, 2010 for 25-year-old males and females. This does not constitute a guarantee of coverage. Actual, final premiums may vary based on a number of factors including state, ZIP code, sex, smoking status, health history, etc.