The 22- and 23-year-olds Etti Baranoff teaches look fit and healthy.
But Baranoff is a finance professor at Virginia Commonwealth University who studies risk and the insurance industry.
She tries to convince the young adults they are one catastrophic illness or accident away from needing thousands of dollars in health care.
One student, recently kicked off a parent’s health insurance policy at age 23, broke his leg playing soccer.
Afterward, he tried to get short-term insurance.
It was too late. The leg was a pre-existing condition. When he could find a policy to cover him, the premiums soared to $400 a month.
The parting lesson?
“Don’t go without,” Baranoff said.
“If you’re young and healthy, you can get unbelievably cheap coverage,” she added.
Short-term, individual health care insurance policies can be a safety blanket for new college graduates who’ve yet to find a job, for people between jobs, and for anyone waiting to be covered by a new employer’s group health insurance.
Two in five recent college graduates go without health care insurance at some point during the first year after graduation, according to a 2003 study by The Commonwealth Fund, a nonpartisan group in Washington devoted to expanding health care coverage.
Also, half of high school graduates who work instead of attending college immediately have a gap in coverage during the 12 months after graduation, the group found.
Short-term plans have always existed, but there is more interest recently, Baranoff said.
Instead of hunkering down immediately with full-time jobs, she sees a growing number of college graduates pursuing international travel and part-time jobs.
She recommends using an online search engine like ehealthinsurance.com to do comparison shopping.
Shoppers can pick and choose the types of medical insurance they need, which can lower the cost. “If you’re a young, unmarried guy, you don’t need maternity care,” Baranoff said.
You can view options by monthly payment or lump sum payment, which can result in lower costs.
Baranoff advises student travelers to make sure they will be covered overseas. “They need to do a little due diligence,” she said.
Consumer Reports also warns shoppers to be wary. Research any plans promoted as “union plans” or “association plans.” These plans may offer artificially low premiums and are not licensed by states. Companies may say they don’t need the license, and that they are insured by the U.S. Department of Labor. Don’t believe it, according to Consumer Reports.
You are likely to be stuck with unpaid bills, it said in a June 2006 article.
Always check to see if your company is licensed by your state, it recommended.
Recent graduates with serious health conditions in their past may want to consider sticking with a group health insurance plan, Baranoff said.
source: fredericksburg.com