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College Graduates Without Health Insurance

Recent Grads in Need of Medical Coverage

Apr 10, 2009 Rebecca Hersh

Each year, thousands of students graduate from college. Unfortunately, not all of these students immediately obtain jobs, and employment does not guarantee benefits.

Most insurance companies offer to cover the policy holder’s children even beyond their 18th birthday if they are enrolled full-time in school. However, once that diploma is received, the rules change. Some companies drop former dependents right away, while others give a three to six month cushion. In this latter scenario, the added time is generally enough to cover the gap between graduation and employment. Additionally, some college and university insurance plans also continue coverage through the summer gap. However, this is not always the case.

Graduates Lack Health Coverage

For many college grads, insurance is not at the top of their list of concerns. After all, they need to find a job, get an apartment, pay off student loans, and deal with any number of other post-graduation issues. In fact, US News reported that some 34% of college grads are uninsured during the 12 months following their graduation (“More Young People Going Without Health Insurance” May 30, 2008). Unfortunately, not having insurance can lead to serious health and financial concerns. At the same time, many grads simply can’t afford full, permanent coverage right out of school.

COBRA Benefits

Thankfully, though, graduates do have options. For one, a1986 law passed by the U.S. government grants students benefits under what’s known as the COBRA policy. COBRA lets students stay under their parents’ health plan for up to 36 additional months. However, this option can be pricey. Applying for a COBRA extension, which must be done within 60 days of graduation, may leave a graduate liable for 102% of the policy’s cost. Each insurance company has its own rules, though, and some graduates may find COBRA to be their best option.

Short-Term Health Insurance

Another avenue available to uninsured grads is buying a short-term policy. These tend to be fairly low-cost and many companies even offer plans tailored to recent graduates. However, short-term plans will not cover any preexisting conditions. Short-term policies can be bought in a variety of increments up to one year. They are also easy to cancel if a graduate receives full employment benefits. For more affordable short-term plans, graduates can also look into student health insurance. These cost less than regular plans and are designed for college students. To qualify for such a plan, though, a student must apply for insurance at least 31 days prior to graduation. These student insurance options will last six months to one year, which should keep a graduate covered until he or she obtains a job.

Thanks to the advent of the internet, finding health coverage is remarkably easy. Information on what plans to buy and how much to pay is easy to search for. However, Kiplinger and US News both recommend starting at ehealthinsurance.com to compare plans and rates.

The copyright of the article College Graduates Without Health Insurance in General Medicine is owned by Rebecca Hersh. Permission to republish College Graduates Without Health Insurance in print or online must be granted by the author in writing.

College Grads Need Health Insurance