If a child’s graduation is imminent, many parents are thinking what would be the best gift they could give to demonstrate pride in their child’s achievements? While students often wish for that new car or a trip with friends, there is an even better reward that a parent can bestow upon a graduate: Healthcare!
Perhaps the most successful provision of the ACA is the ability for parents to cover dependents through age 26. More than 3.1 million young adults are currently dependents on their parents’ health insurance. In addition, students are often able to purchase special health insurance through their college or university.
What happens after graduation? Although many graduates are under age 26 and can remain on their parents’ plans, the latest U.S Census reports that nearly 3 in 10 people ages 19-34 are uninsured. This is highest proportion among all age groups. Although young adults are usually healthy and therefore believe that health insurance is unnecessary, that line of thinking can be financially dangerous.
Also, 2014 is a critical year for health care reform. Health insurance will be mandatory, or individuals will face a financial penalty for noncompliance.
Consider these alternatives for graduates:
- Remain on a parent plan until age 26.
- Review the plans that are available in the open market, and effective January 1, 2014 in your state’s health insurance exchange. There are many factors to evaluate: coverage, premiums, deductibles, etc. Be sure to ask for help from insurance brokers, websites or other health care specialists.
- Short term health insurance can be purchased for an11 month duration. By enrolling in this kind of plan, a student can have coverage until something permanent is available.
- High deductible plans are an excellent alternative for most healthy young people. Premiums are lower, and although the higher deductible may seem onerous, overall these plans most often make sense for young adults.
No college graduate should be uninsured.
For additional information, contact EAB HealthWorks.