What New Graduates Need to Know About Health Insurance
Graduating from college should be one of the most exciting times in a young person’s life. You are finally on your own, ready to start your career and conquer the world.
Unfortunately, this is also one of the most stressful moments: you will negotiate with untrustworthy brokers, rethink if your college sweetheart is really the “one”, and travel the hellish landscape that is the American health care system. first time.
I can’t help you deal with that college guy you’re starting to drift away from, but I can crush your health insurance options. Here’s what you need to know.
You can stay on your parent’s insurance
If you are under 26, you can stay on your parent’s insurance if you can, and it makes financial sense for your family. This can save you over $ 1,000 per year .
However, if you move to another state, you are likely to face higher costs because your doctors will no longer be online. So if you don’t plan on going home every time you need to go to the doctor (not to mention emergencies), you should look for a new plan.
One final consideration: privacy. You may not want your parents to know this every time you need to see a doctor or receive bills at your appointment.
Sign up for employer insurance
If you have a job straight out of school, you will be presented with health care options from HR, and you usually have 30 days to make an admission decision.
According to the latest figures from the Kaiser Family Foundation, the average annual contribution for employees with employer-sponsored coverage is $ 1,325 (your employer gets a little more). This does not take into account other costs such as co-payments and your deductible. Medical savings accounts (tied to high deductible plans) and flexible spending accounts can save you tons of money. Workplace wellness programs can also help you with some of the costs, although you will be sacrificing your privacy.
Choose a plan in the individual market
If you cannot stay in a parenting plan and do not have a job yet, you can choose a plan from your state’s health insurance market, which you can access at healthcare.gov . Open registration is over, so make sure you are eligible for the special registration period .
People under the age of 30 can purchase Catastrophic plans, which have lower premiums than other plans in the individual market, but much higher deductibles (the deductible for all Catastrophic plans in 2017 was $ 7,150). The rationale behind these plans is that you will save money if you do not need to seek medical attention for something serious.
One important thing to keep in mind is that if you earn between 100 and 400 percent of the federal poverty level ($ 12,060-48,240 per person), you may be eligible for a premium subsidy. And if you are unemployed or your income is up to 138 percent of the federal poverty level, you may be eligible for Medicaid (if your state expanded after the Affordable Care Act), where you can enroll at any time. via healthcare.gov .
Remember which services you can access “free”
There are a number of preventive services that you can access at no additional cost , such as screening for certain chronic conditions, depression and breast cancer, and birth control. But make sure the doctor you visit is online and not reselling other treatments that you don’t need.
The individual mandate is still in force
At least for now. This means that if you don’t have insurance, you could owe the government money before taxes: the fine in 2017 was $ 695, or 2.5 percent of your family’s income. That is, if the Trump administration levies a fine. This ACA provision will expire next year.