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

While many universities require students to have some form of health insurance, many young people do not 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 the in’s and out’s of  their coverage either.  As the end of your collegiate education draw closer so do the days of maintaining health insurance coverage on your parents policy and many students are unsure of what is 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 post college.

Understanding What is Covered by your Policy

- 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 tends to cost a bit more.

- As you are likely on your parent’s policy, it is important to know when that coverage will cease. This will vary between insurers but is usually somewhere around 24. If you leave school for whatever reason and are over a certain age, the insurance company may drop you.

- 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.

- Although student health centers are great to help with minor issues they should not be relied on for every medical need you have.  These locations may also be closed during holidays and breaks.

Premiums for College Age Students are Low

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 are also lower as if a minor issue arises it can be dealt with by the student health center and you will not make a claim 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 are officially entering into the “real world” of 40hr jobs, rent/mortgage, etc, and insurance is not always a top priority but could save you thousands of dollars if you were to have any medical issue.

The Post College Years

If you were on a university based student health plan, some schools will allow the student to maintain their coverage for a period if they can not 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.  Policies that cover this short period, sometimes referred to as gap insurance, may be something worth considering.

I Graduated, but Have No Job Yet…

In the current economic environment, new grads face a bit of an uphill battle to get a quality job as many people are without work including those with work experience in the field you are applying.  It is also possible to get a job with a smaller firm with no group health benefits.  Student health or family coverage may be possible, but in many cases it is not, here are some possible solutions for your situation.

- Although more expensive than group coverage, young people still get very affordable coverage on individual medical plans. If you have a decent income this may be a suitable option.

- With no income or very low income it is 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.

- High risk health insurance is offered at a state level as well if you have a preexisting condition which prevents you from being covered.  These policies differ from state to state.

Give yourself adequate time to weigh what options are out there. It is 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 will never use.

This article was written by Barbara Waltz, an industry expert and one of the founders of a well known insurance blog.