Insurance Plans after Graduation

by Medindia Content Team on May 8 2006 12:10 PM

After graduation students have to apply for a separate insurance scheme as they would no longer be covered by their parents insurance scheme. But some may feel that they can go without insurance to save money which proves to be disastrous if they are injured or diagnosed with a serious medical problem. Even those who find jobs right away can be without insurance for a few months since there's often a waiting period before employer-sponsored coverage is bestowed on the new comer.

According to a study by the Commonwealth Fund, a nonprofit researcher in New York it was found that more than half of adults who were uninsured last year reported problems with medical debts. People 19 to 29 were the group most often uninsured. Larry Akey, a spokesman for America's Health Insurance Plans, a trade group in Washington, D.C talks about the insurance plans to the students. He says that the school-sponsored insurance is through the summer.

In case of parents’ plan, then it will not cover the health expenditure as soon as one receives a diploma. Tom Billet, a senior health benefits consultant in Stamford, Conn., with Watson Wyatt Worldwide adds that in case your parents' plan is self-insured then you're more likely to be considered a dependent eligible for coverage until the end of the year. But recently some states have passed laws that have increased the age limit to 23 to receive full time student insurance.

New Jersey increased the age of dependent status for health insurance to 30. Colorado expanded the age for dependents up to age 25. But all these extensions may not apply if the person receives health insurance through a self-insured company or the federal government. Even short term health insurance is available which cover for a period of one month to one year.

It is cheaper than regular health plans and can be found online or through traditional insurance brokers. A traditional individual policy will remain in effect until you stop paying premiums, which will help you pull through a serious injury or illness. Phil Alban, an independent insurance broker in Albany, N.Y says that Cobra coverage which is authorized by the Consolidated Omnibus Budget Reconciliation Act of 1986 is the costliest for young people but is worth it.