Graduation: Hazardous to health...insurance
Gaining a diploma means a bright career for most, but it comes with a hefty pricetag for health care
By Ali Turner
Meet Matt Younts, a December 2008 graduate of Ball State University. After graduating with a degree in math education, he had a year lease at Beacon Hill apartments in Muncie, Ind., and he had minimal job prospects because of few mid-year openings in school corporations. Currently, Matt serves as an assistant manager but faces a number of hardships during this time of economic turmoil. One challenge he, as well as many recent and future graduates, must face is the high cost of independent health insurance and the lack of available jobs that offer employer-provided health care. What can those who graduate in May expect from the rising cost of health care, and will they be covered?
For graduates lucky enough to land jobs, employer-based health insurance will most likely be offered. Open enrollment opportunities provide new workers with the option to buy into health insurance. Employers may choose the type and amount of health insurance, but the decision to buy into such policies lies with the worker. These insurance plans are often cheaper and cover more costs than individual plans bought through independent companies.
What if graduate school is the plan? Students should ask their parents if they will still be covered by their insurance during their continued education. Some plans cover students during all types of school, some cover only until a certain age and some stop covering when that first undergraduate diploma is handed to the new grad. Those who remain on parents’ insurance plans should make note that the provider list can vary from region to region. Always be sure to check with new doctors as to which insurance they accept.
Recent grads can also purchase short-term insurance. “This insurance coverage is designed as a safety net against enormous medical costs,” says a reporter from Money Smart Life, an online expert resource for all financial questions. “It generally does not include physical checkups, prescription medication plans or other types of preventative care needs.” This type of insurance, which can cost anywhere from $50 to $300 a month, is better than nothing if an emergency arises.
For those who have neither of the options listed above, other options are available. The Healthy Indiana Plan, which started in 2008, offers coverage to uninsured Hoosiers ages 19 to 64. In order to be eligible for these programs, single adults must make less than $20,000 or 200 percent less of the Federal Poverty Level. Families must have a combined income of less than $40,000. Likewise, eligible adults will not have the option to buy into employer insurance and must have been uninsured for more than six months. Just like regular health insurance, the HIP covers physician services, prescriptions, home health services, outpatient and inpatient hospital visits, family planning, preventive services and diagnostic exams.
The worst kind of insurance is no insurance. “If you don’t have health insurance,” Money Smart Life says, “you’re more likely to avoid needed treatment or preventive medicine due to the costs involved.” Uninsured people who suffer from an injury or accident would be without and have to pay out-of-pocket for their emergency care.
Whether entering the work force, going to graduate school or moving home with mom and dad, be sure to research health care options. Solutions exist for those who do not have long-term employment planned. Whatever the solution, don’t hesitate. There may come a day when being sick will cost you more than your health.
