by Jenny Fliegel
The stress and excitement of graduating college can be overwhelming. Your life suddenly turns into a constant balancing act, and thinking about health insurance might be pushed toward the bottom of your to-do list. But, luckily, recent college graduates do have options when it comes to their health insurance coverage.
Fortunately, Obamacare allows young adults to stay covered under a parent’s plan until the age of 26. Those younger than 26 can stay on or be added to a parent’s health plan, if the parent agrees. However, not everyone can afford this luxury, so there are multiple other coverage options for you to choose from.
If you currently have student health coverage through your college or university, check the expiration date. While there are extension options, each school’s policy is different, and you may lose coverage just a few months after graduation.
Losing student health coverage is also considered a Qualifying Life Event, which gives you the opportunity to find health coverage outside of Open Enrollment. But, don’t procrastinate; you will only have 60 days to sign up from the time you lose your student health coverage!
If you experience a Qualifying Life Event, one health coverage option is to buy a Catastrophic plan through the marketplace. These plans are created specifically for young adults. Catastrophic plans cover three primary care visits per year, as well as preventive care benefits. They are an affordable way to protect yourself from sky-high bills should you face an accident or serious illness.
Graduates can also consider a Health Savings Account (HSA). HSAs allow you to set aside money tax-free to pay for future health care costs. They can also save you up to 30 percent on medical costs that are paid for out-of-pocket.
You may have previously been covered by your parents’ plan or a student plan, and now, you may be unsure how to go about finding coverage on your own. Post-graduate students often overlook the value of a compensation package when looking for a job. If you choose to find a part-time or full-time job immediately following graduation, your new employer may offer health insurance benefits. It’s important to consider your health benefit options while searching for the next step in your career after graduation.
Few people like to think about health insurance coverage until it’s necessary. But, if you wait too long, there may be a hefty tax penalty waiting for you the next time you fill out your tax returns. Last year, the average tax penalty was almost $1,000. Millennials are facing higher university tuitions and student loan debts than ever before, which only increases the importance of finding the best and cheapest option for health insurance. Choosing to pay the tax penalty not only leaves you without health insurance coverage, but it also costs you money in fines that you could be putting toward these education expenses instead.
It’s never too early to start thinking about your future health coverage. Recent college graduates can compare plans and learn more about the enrollment process at GoHealthInsurance.com or by calling 888-322-7557 to talk to a GoHealth licensed agent.