Affordable options available to help the growing number of uninsured recent grads
May 14, 2009
Spring is here, bringing with it an important milestone for many young adults—college graduation. Graduating from college represents a transition from partial to complete independence. While some graduates continue on to graduate studies, many either take some time off or enter the workforce - an exciting time that also happens to be coupled with several financial and lifestyle obstacles.
Upon graduation, many young adults lose their eligibility for health insurance coverage. Former students are no longer covered by their school’s insurance plan and many are no longer considered eligible as dependents on their parents’ plans. As a result, many young adults join the ranks of the 47 million Americans who are uninsured, making recent grads the fastest growing segment of the uninsured population.
According to a recent report by the Commonwealth Fund, nearly 40 percent of college graduates and half of high school graduates who do not enroll in college have no health insurance coverage at some point during their first year after graduation.
Many graduates don’t know how long their job search will last and are reluctant to purchase coverage they feel is unnecessary. The challenge for these twenty-somethings is finding a flexible policy that provides coverage for up to six or 12 months that also allows them to pay for coverage one month at a time. Once they obtain permanent coverage through an employer, they can simply stop paying the month-to-month premium.
Individual medical insurance can give recent graduates and their parents valuable peace of mind by protecting them from the devastating financial impact a catastrophic illness or accident can cause.
“We know that young adults are facing the challenge of seeking health coverage that is affordable,” said John Martie, president, Anthem Blue Cross and Blue Shield of Colorado. “Anthem has created innovative coverage options, like Tonik and Lumenos Consumer-Driven Health Plans that deliver practical coverage for a reasonable price.”
Though policy costs vary according to age, gender and location, they’re typically about one-third the cost of coverage through COBRA. Individual policies are easy to purchase.