8 options for recent grads

2005-12-08T08:59:00.000-08:00

Whether you have just finished your bachelor degree or are about to finally complete your PhD dissertation, you are probably wondering about health insurance options. Before you take that next step in life, check out the 8 health care options for recent graduates listed below.

1. No Insurance
Clearly the least expensive, this option is arguably perfect for the standard-issue super hero – your Supermans, Cal Ripkins and the like. If you do not fall into this category and plan to leave the house, play hoops, ski, drive, wear high heels or slice a bagel, you should look into the other options on the list. Consider these facts.

- 12 million people are rushed to the emergency room for accidents annually. Over 22% of all injury visits to Emergency Rooms are by otherwise healthy individuals with sports related injuries.

- The average hospital visit can cost 5 times as much for someone without insurance as it does for the big medical insurers like Aetna or Blue Shield. An uninsured patient might be charged $14,000 for an appendectomy, while an HMO with big bargaining power might be billed only $2,500 for the same operation.

- In 1999 nearly 500,000 Americans filed for bankruptcy protection because of excessive medical bills, accounting for approximately 40% of personal bankruptcies.

Realistically, having no insurance is not an option. Even Jonny Knoxsville has health insurance.

Pros: It’s free.

Cons: If you get injured or become ill, you and your family can be hit with a devastating financial burden. Many ER’s request a cash deposit from the uninsured prior to treatment!

2. MediCaid/MediCal
MediCal is California’s version of Medicaid; a state/federal health insurance program for individuals who have poverty-level income and few-to-no assets. MediCal covers children, the elderly, blind and/or disabled, and people who are eligible to receive federally assisted income. To learn more about MediCal, visit http://www.cms.hhs.gov/medicaid/default.asp? . Don’t get MediCal confused with MediCare. MediCare is the Federal health insurance program for Americans age 65 and older and for certain disabled Americans.

Pros: It’s free.

Cons: Qualification parameters are limited to the disabled and those with extremely low-income levels and are strictly enforced. Don’t try to cheat this system – it’s bad karma.

3. Free Clinics
Most urban areas have local clinics that offer low-cost or even free medical care including routine doctor visits, STD, and HIV testing. Services vary by clinic – check your local phone directory for a list of clinics near you. A free clinic, however, does not function like an emergency room, and therefore cannot help you if you’ve blown out your ACL playing touch football with your idiot friends on Thanksgiving. Free clinics generally do not offer major surgery, hospital stays, or long-term care.

Pros: It is low-cost, and may even be free.

Cons: Clinics do not function as full-fledged hospitals, nor do they allow patients to choose their own doctor. Also, bring something to read – you’ll be there awhile.

4. Mom and Dad
Most family insurance plans will cover kids up to age 19 if they are not full-time students, or until age 25 if they are (you must be able to verify that you are a full-time student to be included in your parents’ coverage). Some plans stop coverage immediately upon graduation, while others will extend coverage through the first three months following graduation. Check with your parents’ plan to see when your coverage ends. When it does, one option is to simply purchase the same coverage as you had under your parent’s plan. Click here to get a quick quote.

Pros: Staying under your parents’ plan is great if you qualify.

Cons: You have to be under 19 or be able to prove that you are a full time student to qualify.

5. New Employer
If you get a full time job after graduation, your job may come with health insurance benefits as part of your total compensation package. But check with your human resources contact and read your offer letter closely — some companies require that you be employed for up to six months before their health coverage kicks in. Also make sure you understand the status of your employment with this new company. With the economy the way it is, many firms are forced to cut costs by hiring on new employees on a “consultant” basis. If you are hired on as a “consultant” rather than as a full-time employee, your new employer may not be obligated to offer you health insurance. Ask the HR division of your new company how they handle benefits.

Pros: Many employers offer multiple, high-quality health plans to choose from. Often these plans offer excellent comprehensive medical coverage. Also, your contribution is taken directly from your paycheck for minimum hassle and maximum benefits.

Cons: You have to actually get a job first. Even when you do, look closely – you may be without coverage for your first 3 to 6 months.

6) Short-term health insurance
Some insurance companies sell short-term coverage that allows you to be covered anywhere from 1 to 12 months. Short –term health insurance usually does not cover any previous medical conditions so read the fine print. Short-term insurance has a “daily option” which allows you to select the exact amount of days you want to be covered so you will not be charged for two whole months if you only need 45 of medical coverage. This might be a great solution for someone who needs temporary coverage until his or her work medical plan kicks in. Warning: Usually there are no refunds or changes once a short-term policy is in force and you must pay the whole amount in full if you go for the daily option. Before you go with short-term coverage, compare it with an individual coverage plan (#7 below). Sometimes individual coverage is less expensive, more comprehensive and easy to cancel. Remember short-term insurance is not renewable.

Pros: Designed for people who are in-between coverage.

Cons: Can be expensive and coverage is limited and non renewable. Almost anyone considering Short term insurance can get a better plan for less by going with an individual plan.

7) Individual Coverage
Individual health insurance coverage comes in all shapes and sizes. In California, big name companies such as Blue Cross, Health Net, Pacificare, and Kaiser all offer individual medical insurance. Your price is based on your age, type of coverage, and where you live. One thing is for sure: They prefer to insure healthy people. Those with pre-existing medical conditions rarely receive the lowest rate. On the positive note, much has changed since the prehistoric days of monumental insurance paperwork and snail mail. Forms that used to take 20 days to fill out and file, can often be completed in about 20 minutes online with e-signatures. The best plan for young active individuals in California is Blue Cross Tonik. To learn more and get a quote and see examples of health insurance premiums for you age visit our sister site www.medicoverage.com

Pros: Pick the plan that works for your needs and budget. Easy to sign up for online

Cons: A comprehensive plan with prescriptions, no charge doctor visits and no deductible can get pricey. Also those with many previous medical conditions are often bumped up to more expensive policies.

8) COBRA
While sounding like a bad heavy metal band, COBRA actually stands for Consolidated Omnibus Budget Reconciliation Act. COBRA was designed so that individuals who leave their jobs (read: fired) can still purchase the same insurance policy that they had with their previous employer. If you were already covered under your parent’s policy and have recently graduated, you may qualify for COBRA. You must notify your parents plan administrator within 60 days of termination of your coverage (usually graduation from college) and tell them you would like to “elect” Cobra. Cobra coverage can be very expensive, but there are typically no restrictions for pre-existing conditions and the coverage can be discontinued after permanent insurance is found. You will be able to use cobra for at least 18 months.

Pros: Coverage will be exactly what you are used to, as it is simply a paid continuation of your previous plan.

Cons: Usually expensive. If more than 60 days have passed since your coverage under your parents’ plan ended, you’ve missed the boat.

What is Tonik?

2005-09-28T19:40:00.000-07:00

So if you have checked out my www.healthygrads.com site you know that I'm a big fan of Tonik. It's a great health insurance but it's not for everyone.

So what is Tonik?
Basically, Blue Cross launched a new group of health insurance plans called "Tonik" specifically targeting active young healthy people who needed health insurance but hate forms and jargon. Their goal is to create fun, easy to understand plans that you can apply for in minutes.

As a young active individual myself, I've been waiting for plans like these. But my partners and I were skeptical at first since, as we all know, health insurance companies are notorious for making everything more confusing than it needs to be.

Well if you can get past the whole extreme sports theme it turns out that Tonik plans ARE easy to understand, easy to apply for and very affordable.

Here is the cool part: Tonik includes health insurance, dental coverage and vision discounts for one low monthy premium. If you’re 19– 29 years old, rates can be $64 – $123 per month. Other comparable plans often cost as much but do not cover doctor visits or dental. The price will vary based on your zip code, type of plan and your age.

There are three plans to chose from. Check them out at my plans details page. My favorite is the "calculated risk taker." It offers unlimited trips to the doctor for $40 plus a 1,500 deductible.

So why is it not for everyone?
While Tonik offers medical, dental & vision, low copays, low deductables, and generic percriptions, tonik does not cover maternity or brand name perscription drugs. If you are thinking about having a kid or you want cutting edge drugs that are still under a patent, Tonik is not for you. Give me a call at my office, 888 285 6334 and I'll find a plan for you.

One good thing about Tonik is that it's not just limited to young active kids. If you are under 65 you can qualify for Tonik. If you want to learn more or apply for a plan visit the tonik plans website.

Can I get covered under my parents plan?

2005-09-28T19:34:00.000-07:00

If you are a full time student and under 25, most insurance companies will still cover you under your parent’s policy. Once you graduate, however, you are on your own. Your your parent’s plan will cut off your benefits usually within 3 months of graduation. You may be eligible for COBRA after that but it can get expensive.

Can I get health insurance for "free"?

2005-09-25T13:47:00.000-07:00

Yes, there are a few ways to get "free" health insurance. Consider the following "free" techniques before purchasing health insurance.

A) Get a J.O.B that offers health insurance benefits. There seems to be less and less benevolent employers out there but some of the bigger companies will set you up with a good medical plan. This is the best option for grads that plan on working for "the man." Remember that most companies have a waiting period of 6 months before you are covered under the office plan so you may need short term coverage.

B) Marry someone who currently gets health insurance through their work. By no means are we suggesting that you become an insurance Gold Digger. All we are saying is that some companies extend their employee benefits to their spouses and if you happen to marry someone who has this benefit, jump on it.

For recent grads that don't fall in to category A or B above, you definitely need to purchase health insurance.