Health Insurance for the Recent College Graduate

| Posted: 06-10-2006 | Comments: 0 | Views: 362 | Rating: (52)

(?)

As you graduate college and head into the great, big, scary world, there are probably a lot of things on your mind. First and foremost is finding a good job, then finding a place to live, and then maybe figuring out how to pay back those student loans. One thing that might not cross your mind is health insurance. All of your life, you've most likely been a dependent on your parents' coverage, but that ship is about to sailif it hasn't already.

We know what you're thinking, "Why do I need health insurance? I'm young, I'm healthy, and doctor visits are few and far between. So why pay for something I'll never use?" Hey, we understand where you're coming from. But accidents and illnesses happen without warning, even to the strapping young adults such as you. Sure, health insurance is expensive, but not having it will cost you dearly.

First things to know

Let's get one thing straight, health care in the United States is a nightmare, few will argue that. There are thousands of options when it comes to receiving care and paying for it, some of them good, some of them not so much. When it comes to choosing an insurance policy that's right for you, confusion abounds. So let's learn a little more about your options.

There are two essential categories of health insurance: managed care and indemnity plans. Though you'll pay more for indemnity coverage, it offers much more flexibility than does a managed care plan. Through indemnity coverage, you'll have your choice of doctor, lab, hospital or specialty clinic. When you seek medical care, you'll have to pay an out of pocket expensecalled a deductiblebefore your coverage will kick in. Deductibles range from a few hundred dollars up to $1,000 or more, depending on your policy. Also, indemnity plans require a co-payment on medical care; meaning you'll be responsible for a percentage of the treatment costs along with your deductible. Generally, indemnity plans pay only for accidents or illness; they usually don't cover preventative care.

Managed care is the complete opposite of indemnity coverage. Deductibles are usually smaller, co-payments are lower, and preventative care is usually covered. Your options, however, are limited. Through a managed care plan, you can only choose between health care providers who are contracted by your health maintenance organization. If you go elsewhere, you paythe full amount. Since that's a pretty rough deal, many managed care plans are offering hybrid options that include many of the desirable characteristics of an indemnity plan.

Which way to go

If you find a job that offers health insurance and you're single, take it. It may not be perfect, but it beats anything you can find on your own. When you sign up through your employer, you'll probably be confronted with many options. Take a good, long look at them and ask for help from a human resources representative if need be, but make sure you choose the plan that's right for you. Chances areif you're young and healthy you'll want a plan with a low premium and higher deductible. Look for a plan that minimizes your out-of-pocket expenses. When it comes to choosing between and indemnity plan or a managed care plan, you may or may not have a choice depending on your employer. Both offer advantages and disadvantages, so make sure to crunch the numbers before committing to one or the other.

Make yourself a deal

Though health insurance is a costly part of our lives, there are ways to save. If you're self-employed, shop around before you commit to a plan. If you're under 50 and in good health, insurance companies will want your business, and cut rates are to be had. Also, take advantage of breaks from Uncle Sam. The self-employed can write off up to 45 percent of their insurance premiums. Some employers offer flexible spending accounts, where you can pay for premiums and costs not covered by insurance with cash that isn't subject to taxes.

If you're married and your spouse also can get coverage from their employer, weigh your options carefully. It might benefit you financially and coverage-wise if you measure the pros and cons of separate coverage, double coverage, or one of you opting out of your work's plan and enrolling in the other's.

Finally, if you've been healthy and believe you can get by with minimum health coverage, look into purchasing "catastrophic coverage". This indemnity policy offers extremely low premiums, but deductibles can be very highup to $2,500. Coverage is extremely limited to "catastrophic" events, which you'll need to learn all about.

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: Risk, Health, College, Insurance, Cover, Accident, Student, Premium, Hospital, Graduate

Article Source: http://www.articlesbase.com/finance-articles/health-insurance-for-the-recent-college-graduate-61303.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

Joseph Kenny writes for the UK Loan Store, with some great loan offers and more information on bad credit loans available on site.
Visit Today: http://www.ukpersonalloanstore.co.uk/

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

Health Insurance 101 Explained
By: Joseph Kenny | 22/07/2006 | Non-Fiction

Health Insurance Plans for Students
By: Joseph Kenny | 09/11/2006 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Health Insurance 101 Explained
By: Joseph Kenny | 14/07/2006 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Renters Should Be Insured Too
By: Joseph Kenny | 05/06/2008 | Insurance

Student Health Insurance
By: Joseph Kenny | 22/12/2005 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

How Much Homeowners Insurance Coverage Do You Need?
By: Joseph Kenny | 05/06/2008 | Insurance

Insurance: The Common Insurance Points
By: Joseph Kenny | 23/12/2005 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

A Trip to Africa With Peace of Mind
By: Andy Burrows | 10/07/2007 | Exotic Locations

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

How do i get a sluggish metabolism to begin ...
By: tammy | 10-09-2008
how do i get a sluggish metabolism to begin working so i can lose weight?

Headach,can't sleep,pain on right side of face ...
By: fefemitchee | 10-09-2008
headach,can't sleep,pain on right side of face,forgotting things,smelling blood,back of eyes hurt, thing don't tast right

Second stage of kidney failure, what alternative ...
By: blkpreneur | 10-09-2008
Second stage of kidney failure, what alternative/herbal medication will help turn this around

I take 6 solpadine a day i have a reflux i had ...
By: joanfarrelly | 10-09-2008
i take 6 solpadine a day i have a reflux i had chest pain a stinging sensation is it related to tabs

Is post graduate medical degee done from singapore ...
By: dr khalid vakil | 10-09-2008
is post graduate medical degee done from singapore and malaysia recognized in india

Community College Student Work Houors
By: JoAnn | 10-09-2008
What is the legal amount of hours a community college can work a student, if they are not in a Work Study Program?

Q&A Powered by:

Latest Finance Articles

Understanding Debt Consolidation Loans
By: Richard Greenwood | 07/10/2008
It can be all too easy to end up in debt and especially during the current times of financial uncertainty you may find yourself unable to make repayments. Consolidating your debt can make your debts easier to manage and lower your interest charges meaning you become debt free faster.

Credit Card Comparison
By: Richard Greenwood | 07/10/2008
Credit card offers are everywhere and all claim to out do each other. How do you cut through the marketing talk and understand the key features you need to compare to make an informed decision. Find out with this informative article on credit card comparison.

Shopping For Auto Insurance
By: Brenda Williams | 07/10/2008
When you get your license for the first time before you begin driving you need to get car insurance as it's mandatory to have car insurance while driving. Car insurance can be rather expensive, especially for new drivers which is why you'll need to ensure that you're getting the best...

Taking 100% Responsibility - the Prerequisite for Creating Money & Marriage Success
By: Leslie Cunningham | 07/10/2008
It's a simple concept, to refrain from blaming and complaining, and yet it's a challenge to change a habit, especially one that everyone else has. Like sticking to your diet, when everyone else around you is enjoying chocolate cake. Keep reading and you'll find out how this relates to your marriage and finances. Then I'll share some action steps to help you become 100% responsible for your life.

Retirement Income Investing and Your Portfolio
By: Steve Selengut | 07/10/2008
Brokerage firm monthly statements are designed to promote either fear or greed, depending on the current market environment. Nowhere on your statement can you find numbers that report your net investment, your total working capital, or your true asset allocation. Current and projected income numbers are given little attention

Buy to Let Investors Get a Boost
By: Parmdeep Vadesha | 06/10/2008
Buy to let UK investors are in a prime position to take advantage of a new government plan to spur property market activity. The scheme aims to permit property buyers to buy properties worth up to

How to Buy a Repossessed Property for Below Market Value
By: Parmdeep Vadesha | 06/10/2008
Buying a repossessed property is what matters for investors who are keen on reaping high profits. But even with the advantages it poses, there are certain aspects you need to be aware of before you start on the task of acquiring your next property cheaply.

Brits Should Ensure They Have the Cheapest Energy Supplier
By: Abbi Rouse | 06/10/2008
With energy prices escalating steadily, consumers could knock considerable amounts off their utility bills by switching from their areas default supplier.

More from Joseph Kenny

What Type of Loan Do You Need?
By: Joseph Kenny | 19/06/2008 | Loans
If you have ever applied for a loan, then you probably are aware that there are different kinds of loans which are available at banks, credit unions, other financial institutions, or with private lenders.

Choosing The Right Life Insurance For You
By: Joseph Kenny | 17/06/2008 | Insurance
Here is an important question for you. Have you considered the type of life insurance policy you need? For many people throughout the country, the question of life insurance is one they have no answer. They haven't even considered it. It is not always about not having the money to purchase a policy.

Be Prepared When Applying For A Mortgage
By: Joseph Kenny | 16/06/2008 | Mortgage
It is true that most of the people in America do not have the finances to purchase a home and pay cash or the equivalent for it. The American dream is to own a home and the main objective is to obtain a mortgage for it. This is what the mortgage lenders know and most of them are willing to be of help in this endeavor.

Choosing The Right Credit Card Deal
By: Joseph Kenny | 16/06/2008 | Credit
When you are considering applying for a credit card you probably will have several offers available. The credit card companies will spend about a million dollars a year to send us their particular offers for credit. Trying to choose which one among them that is best for you can be a hard decision to make. Should you choose the first pre-approved offer and send in the application?

Dwindling Consumer Confidence Is Not Helping the Housing Market
By: Joseph Kenny | 16/06/2008 | Finance
e aggressive interest rate cuts by the Federal Government to maintain jobs and even a stimulus package sent out to assist with finances, consumer confidence is still lingering around its lowest level in close to two decades.

Choosing Between A Second Mortgage And A Home Equity Loan
By: Joseph Kenny | 16/06/2008 | Mortgage
There are some alternatives available to the homeowner who needs financial help but does not want to refinance their present mortgage. There are however, at least two main options if some sort of equity loan is desired. You can obtain an equity credit line or a second mortgage loan and there are specific advantages and disadvantages with each one.

Defining Credit Card Finance Charges
By: Joseph Kenny | 13/06/2008 | Credit
There are other fees associated with the use of a credit card besides the actual charge from each purchase. These other costs can add to the total balance on your account that you have to pay.

Eliminate Debts For A Better Personal Life
By: Joseph Kenny | 13/06/2008 | Finance
The elimination of personal debt is always a good idea; removing debt is always advantageous in many ways. It doesn't matter who you are wealthy and have huge debts, or who are regular person with a small amount of debt.

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.76, 16)

Health Insurance for the Recent College Graduate

Article Comments

Related Articles

Got a Question? Ask.

Latest Finance Articles

More from Joseph Kenny

Need Help?

Site Links

Webmasters

Business Info

Sign up for our email newsletter