| Just
graduated from college? Medicoverage has compiled 8 health care
options for recent graduates.
1.
No Insurance
Clearly the least expensive, this option is arguably perfect for
the standard-issue super hero – your Supermans, Cal Ripkins
and the like. If you do not fall into this category and plan to
leave the house, play hoops, ski, drive, wear strappy heels or
slice a bagel, you should look into the other options on the list.
Consider these facts.
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12 million people are rushed to the emergency room for accidents
annually. Over 22% of all injury visits to Emergency Rooms are
by otherwise healthy individuals with sports related injuries.
-
The average hospital visit can cost 5 times as much for someone
without insurance as it does for the big medical insurers like
Aetna or Blue Shield. An uninsured patient might be charged
$14,000 for an appendectomy, while an HMO with big bargaining
power might be billed only $2,500 for the same operation.
-
In 1999 nearly 500,000 Americans filed for bankruptcy protection
because of excessive medical bills, accounting for approximately
40% of personal bankruptcies.
Realistically,
having no insurance is not an option. Even Jonny Knoxsville has
health insurance.
Pros:
It’s free.
Cons: If you get
injured or become ill, you and your family can be hit with a devastating
financial burden. Many ER’s request a cash deposit from
the uninsured prior to treatment!
2.
MediCal
MediCal is California’s version of Medicaid; a state/federal
health insurance program for individuals who have poverty-level
income and few-to-no assets. MediCal covers children, the elderly,
blind and/or disabled, and people who are eligible to receive
federally assisted income. To learn more about MediCal, click
here. http://cms.hhs.gov/medicaid/. Don’t get MediCal confused
with MediCare. MediCare is the Federal health insurance program
for Americans age 65 and older and for certain disabled Americans.
Pros: It’s
free.
Cons: Qualification
parameters are limited to the disabled and those with extremely
low-income levels and are strictly enforced. Don’t try to
cheat this system – it’s bad karma.
3.
Free Clinics
Most urban areas have local clinics that offer low-cost or even
free medical care including routine doctor visits, STD, and HIV
testing. Services vary by clinic – check your local phone
directory for a list of clinics near you. A free clinic, however,
does not function like an emergency room, and therefore cannot
help you if you’ve blown out your ACL playing touch football
with your idiot friends on Thanksgiving. Free clinics generally
do not offer major surgery, hospital stays, or long-term care.
Pros:
It is low-cost, and may even be free.
Cons:
Clinics do not function as full-fledged hospitals, nor do they
allow patients to choose their own doctor. Also, bring something
to read – you’ll be there awhile.
4.
Mom and Dad
Most family insurance plans will cover kids up to age 19 if they
are not full-time students, or until age 25 if they are (you must
be able to verify that you are a full-time student to be included
in your parents’ coverage). Some plans stop coverage immediately
upon graduation, while others will extend coverage through the
first three months following graduation. Check with your parents’
plan to see when your coverage ends. When it does, one option
is to simply purchase the same coverage as you had under your
parent’s plan. Click here to get a quick quote.
Pros:
Staying under your parents’ plan is great if you qualify.
Cons: You have to
be under 19 or be able to prove that you are a full time student
to qualify.
5. New
Employer
If you get a full time job after graduation, your job may come
with health insurance benefits as part of your total compensation
package. But check with your human resources contact and read
your offer letter closely -- some companies require that you
be employed for up to six months before their health coverage
kicks in. Also make sure you understand the status of your employment
with this new company. With the economy the way it is, many
firms are forced to cut costs by hiring on new employees on
a “consultant” basis. If you are hired on as a “consultant”
rather than as a full-time employee, your new employer may not
be obligated to offer you health insurance. Ask the HR division
of your new company how they handle benefits.
Pros:
Many employers offer multiple, high-quality health plans to choose
from. Often these plans offer excellent comprehensive medical
coverage. Also, your contribution is taken directly from your
paycheck for minimum hassle and maximum benefits.
Cons:
You have to actually get a job first. Even when you do, look closely
– you may be without coverage for your first 3 to 6 months.
6) Short-term
health insurance
Some insurance companies sell short-term coverage that allows
you to be covered anywhere from 1 to 12 months. Short –term
health insurance usually does not cover any previous medical
conditions so read the fine print. Short-term insurance has
a “daily option” which allows you to select the
exact amount of days you want to be covered so you will not
be charged for two whole months if you only need 45 of medical
coverage. This might be a great solution for someone who needs
temporary coverage until his or her work medical plan kicks
in. Warning: Usually there are no refunds or changes once a
short-term policy is in force and you must pay the whole amount
in full if you go for the daily option. Click here for a short-term
quote. Before you go with short-term coverage, compare it with
an individual coverage plan (#7 below). Sometimes individual
coverage is less expensive, more comprehensive and easy to cancel.
Remember short-term insurance is not renewable.
Pros:
Designed for people who are in-between coverage
Cons: Can be expensive
and coverage is limited and non renewable.
7) Individual Coverage
Individual health insurance coverage comes in all shapes and sizes.
In California, big name companies such as Blue Cross, Health Net,
Pacificare, and Kaiser all offer individual medical insurance.
Individual coverage runs the gambit as far as cost and comes in
two main categories HMO’s and PPO’s. Your price is
based on your age, type of coverage, and where you live. One thing
is for sure: They prefer to insure healthy people. Those with
pre-existing medical conditions rarely receive the lowest rate.
On the positive note, much has changed since the prehistoric days
of monumental insurance paperwork and snail mail. Forms that used
to take 20 days to fill out and file, can often be completed in
about 20 minutes online with e-signatures. Make sure you check
out the new health plans
designed expecially for individuals between the ages of 19-29.
Next Steps? Read "what to consider when selecting individual
coverage" here and
get a quote here.
Pros:
Pick the plan that works for your needs and budget.
Easy to sign up for online
Cons: A comprehensive
plan with prescriptions, no charge doctor visits and no deductible
can get pricey. Also those with many previous medical conditions
are often bumped up to more expensive policies.
8) COBRA
While sounding like a bad heavy metal band, COBRA actually stands
for Consolidated Omnibus Budget Reconciliation Act. COBRA was
designed so that individuals who leave their jobs (read: fired)
can still purchase the same insurance policy that they had with
their previous employer. If you were already covered under your
parent’s policy and have recently graduated, you may qualify
for COBRA. You must notify your parents plan administrator within
60 days of termination of your coverage (usually graduation from
college) and tell them you would like to “elect” Cobra.
Cobra coverage can be very expensive, but there are typically
no restrictions for pre-existing conditions and the coverage can
be discontinued after permanent insurance is found. You will be
able to use cobra for at least 18 months.
Pros:
Coverage will be exactly what you are used to, as it is simply
a paid continuation of your previous plan.
Cons: Usually expensive.
If more than 60 days have passed since your coverage under your
parents’ plan ended, you’ve missed the boat.
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