Young Adult Health Insurance
You’re young and healthy, you feel invincible - so why should you bother with health insurance? Because without health insurance, you are at risk of spending years and thousands of dollars paying off hospital bills. In fact, financial advisor Ray Martin stated, “…lack of medical insurance is the number one reason cited by people who file for personal bankruptcy.”
Luckily, there are copious options for young adults needing health insurance. For many, being listed on parents insurance is no longer an option. Most student health insurance policies cost approximately $70 for a plan with a $1000 deductible. But it’s only available to students, so be sure to apply before graduating.
If you’re not in school and are perhaps looking for a job or newly employed, short term insurance is another option. Coverage is provided for up to a 185 days and is generally less expensive than student policies. One of the largest providers is Golden Rule.
For those who were previously employed and had health insurance through your employer, the federal program COBRA will continue your coverage for up to eighteen months. But with COBRA you are accountable for all of the costs, so shopping around may benefit you. EHealthInsurance is also helpful for comparative shopping for non-students.
School, Work, and Health Coverage
Now what to do if you’re not in school and working, but your employer doesn’t offer health insurance. Long-term health coverage is an option or a health savings account is another option. Created by the federal government, coverage is provided by purchasing a qualifying medical policy with a high deductible ($1,650-$2,500). Money is stored in an IRA-like account to pay for deductibles and other medical expenses tax-free. This is an option for someone not expecting to pay nominal medical fees but still needing to prepare for the possibility of a substantial medical emergency.