If you're about to find yourself out of college and in the market for health insurance, take a deep breath. And then:
Learn the terms of your current coverage. If you haven't done so already, check your current plan. You may have a grace period for a few months after graduation, you may be covered for graduate school, or the coverage age might be extendable, even if you've graduated.
Typically, coverage from a parent's employer ends when college does, but in the last few years, at least 30 states have passed laws allowing employers to extend coverage. New Jersey has the longest extension -- until age 30. (No extension following graduation is permitted in California, unless the child is disabled.) Check the National Conference of State Legislatures' website for extension rules.
This review is time-sensitive, though. If you've got a pre-existing medical condition, such as asthma, and stop coverage for longer than 63 days, you could be denied coverage for that condition under your next insurance plan, for a period of time. Or insurers in most states, including California, could choose not to cover you at all.
Consider COBRA. Once your insurance expires under a parent's plan, you can still keep those benefits for up to 36 months by paying a little more than full cost -- up to 102% to include the employer's cost of administering the benefit.
That can be pricey, however. The average yearly premium for an individual plan provided by an employer cost about $4,700 in 2008, according to data from the Kaiser Family Foundation. That's steeper than the portion -- about $700 of the premium -- that an individual would pay under an employer's plan, but often less than you'd pay for a policy on the open market. And staying with the firm's insurance would let you stay with your own doctors, a bonus for anyone with an underlying health condition. (And, no, you won't qualify for the short-term 65% subsidy announced a few months ago; that's reserved only for the person who holds the job that provides the insurance, if he or she is laid off.)
Shop on your own. Ehealthinsurance.com, a large online retailer, is able to provide some managed-care policies for a little more than $100 per month in premiums for people with no underlying health conditions. It and other online sites, such as insure.com, can provide health insurance estimates from a broad array of companies.
After college graduation, Stephanie Ryan, 22, looked for a job that offered health insurance, but she recently began working as a freelance production assistant.
After "three scary months" of no insurance, when her coverage under her mother's employer's policy ended, she opted for a Kaiser Permanente plan that costs about $130 per month for the premium, with a $1,500 deductible and a $30 co-pay for doctor's visits. But don't assume your cost for a similar plan will be the same, says Kathleen Stoll, director of health policy at Families USA, a Washington, D.C., health reform advocacy group.
Insurers base the price on where you live and your personal history, and your cost won't necessarily be the one that comes up first when you access an online health insurer's website.
For more information on individual policies, go to HealthCareCoach.com, a site provided by the National Health Law Program, and type individual insurance into the search engine. The page also includes definitions of terms you'll need to know, such as co-insurance and deductibles. Also search the site for "What are my health insurance choices?" for information on different types of plans.
Stick with a large provider. Many health insurance experts advise choosing large, well-known insurers. They're more likely to have staff who handle grievances, and a toll-free number for questions. Ask for a booklet detailing all you need to do to be covered or reimbursed.
The Health Consumer Alliance (healthconsumer.org or [800] 896-3203) can offer referrals to healthcare options in your area or help going over the fine print on a policy.
General information is also available from the California HealthCare Foundation ( www.chcf.org) or the aforementioned HealthCareCoach.com.
And, if you're a woman, be sure to check for maternity coverage. Many inexpensive plans -- including Tonik, a plan for young adults from Anthem Blue Cross (available in California) -- don't include maternity coverage. So, you may want to consider a rider. Depending on income, pregnant women may qualify for care, for themselves and their unborn baby, under Medi-Cal, California's Medicaid program. Find out more at www.medi-cal.ca.gov. That coverage could continue for both, and possibly for a partner if he's part of the household after the baby is born.
