The College Years and Graduation: What to Consider with Health Insurance

While many universities require students to have some form of health insurance, young people don’t actually understand what their policies entail. The majority of college age students have their insurance through their parents and many of those parents are also not familiar with how to compare health insurance plans or how they work.

As the end of your collegiate education draws closer, so do the days of maintaining health insurance coverage on your parents policy and many students are unsure of what’s out there. This article will cover an overview of what you need to know about your health insurance as well as what is available to you when you finish college.

Understanding what’s covered by your health insurance plan in college.

Some insurance plans are based on local networks. This means that if you leave your state or county to attend school that you may not be covered.  If “out of network” coverage exists within your plan it may have to be signed up for and it tends to cost a bit more. You might have to compare health insurance plans to see if it’s worth staying in town.

Since you’re likely on your parent’s policy, it’s important to know when that coverage will cease. This will vary between insurers but is usually somewhere around the age of 24. If you leave school for whatever reason and are over a certain age, the insurance company may drop you as well. This is important to note because if you have any debt from your student credit card, you’re going to want to look for ways to increase your income.

The majority of universities offer some sort of student health insurance. Grad students or those about to graduate should look into these as an option to cover you once your current coverage ends. A period of being uninsured is frowned upon by insurance companies and they may force you into examinations before being covered and once they do cover you , it may be at a higher rate.

When comparing health insurance plans for college students, how are the premiums?

Universities want their students to have some form of insurance as to not be a health risk to the student population. As college students are a young and pretty healthy population in comparison to the general public, the insurance premiums are lower than standard rates. They’re also lower as if a minor issue arises it can be dealt with by the student health center and you won’t have to visit a doctor.

Lower rates will continue after your studies as well. The period following graduation is one that can be a bit intimidating as you’re officially entering into the “real world” where you actually live on your own and insurance is not always a top priority.

What about insurance plans for right after college?

If you were on a university based student health plan, some schools will allow the student to maintain their coverage for a certain period of time if they can’t immediately find a job after graduation. There are also the cases that occur of students who have a great job lined up with great benefits, the only issue is that the insurance for the job will not start until the interim period is over. This is why it’s important to check with your current insurance plan to see how long you’re going to be covered for.

Policies that cover this short period, sometimes referred to as gap insurance, may be something worth considering. Short term health insurance can really come in handy.

It’s critical that you figure out your insurance coverage situation before you start looking into buying a home in your 20s. You don’t want to be living without any health coverage.

Insurance plans for unemployed college grads.

In the current economic environment, new grads face a bit of an uphill battle to get a quality job as many graduates don’t even know what to do after college. It’s also possible that you can get a job with a smaller firm with no group health benefits. In rare cases student health coverage  or family coverage may be possible, but it isn’t common.

Here are some possible solutions for college graduates looking to compare health insurance plans:

Although it’s more expensive than group coverage, young people still get very affordable coverage on individual medical plans. If you have a decent income this can be possible.

With no income or very low income, it’s possible to qualify for government assistance at a federal, state, or county level. These programs have their critics but having some sort of coverage rather than none is a welcome relief if you ever need to use it.

At the end of the day, you need to give yourself adequate time to compare health insurance plans. It’s important to know what it is that you want and need in terms of coverage as there is no point in paying for something that you’ll never use.

This article was written by Barbara Waltz.