Valuable Information

Beating the Graduation Health Insurance Blues

After years of hard work, tuition, dorm fees, and all the associated expenses, you finally get to watch your child receive his or her college degree.  No doubt you feel an immense amount of pride as she walks across the stage with her sheepskin in hand, and out into the world of full-time employment and hopefully, good benefits including health insurance.

You may then, however, be faced with a sobering fact.  Because she graduated, your child may no longer be covered by your health insurance plan, leaving you both vulnerable to the possibility of high medical bills.

You do have options and they are best explored before graduation and the need for health insurance arises.

1. The first possibility is continuing coverage under your current provider.  If coverage is provided through your employer, ask if you can continue your child’s coverage through COBRA.  If COBRA continuation is unavailable, it may pay to look into converting the coverage into an individual policy, a provision offered in some group policies.  If continuation of the current coverage is possible, it may be your best option, especially if your child has a pre-existing condition that may prevent or delay obtaining coverage elsewhere.
2. The next course of action would be to look into buying a short-term health insurance policy that would provide coverage until she becomes eligible under her new employer’s coverage.  Such policies are widely available from a number of different insurance providers, with a varying range of benefits. You may be tempted to apply for coverage online, but using a local agent is advisable and generally adds little or nothing to the cost.  While short-term medical plans do not have as many benefits as a major medical policy, they do give protection against major emergency expenses such as a hospital stay, or unexpected surgeries or treatments.
3. Individual medical coverage is another choice, depending on the career path your offspring chooses. While some graduates are planning to seek out an employer, more and more are choosing the path of self-employment.  In this case, there are a number of things to consider since individual policies vary widely in their coverage, ranging from rock bottom catastrophic coverage to major medical coverage including prescription drugs and benefits for doctor’s office visits.

After choosing the benefits you believe are necessary, determine whether the policy is guaranteed renewable, and the underwriting practices of the provider. This is important because should a serious illness occur, your child will need protection against cancellation and the high costs of premium changes if the policy is reviewed annually.  Paying a few dollars more a month for these features is well worth the price.

Even though she’s off on her own and making important decisions for her future, you can still protect her by helping her find the right health insurance.