Tracy Davidson

There are some things you can afford to cut from your budget like your daily coffee run, weekly shopping trip, or after-work happy hour… but your health? That’s a different story. Skipping health insurance not only puts you at risk but also those who care about you because they’ll be hit with the financial burden, should you need serious medical attention. When you consider that a short ambulance ride to the hospital could cost upwards of $1,000 and an MRI will likely cost over $600…paying for a health insurance plan suddenly doesn’t seem so bad.

After the laborious debate over health care, many people were scratching their heads wondering when it would directly affect them. The reforms will be introduced gradually over the next 10 years, and while it’s been a hot topic for controversy, 55% of people do agree on one thing: They’re confused about the new law, according to a Kaiser Family Foundation poll. So if you’re still scratching your head, clearly you’re not alone. Check out Bankrate’s timeline to see a simple breakdown of the reforms being rolled out over the next 10 years.

The Health Care Bill signed in March will make affording health insurance easier for young adults by allowing them to stay on their parents’ policy until age 26. Unfortunately, for spring 2010 grads, this new law won’t kick into effect until September 23. However, many insurers including Independent Blue Cross Blue Shield and UnitedHealthcare have announced efforts to jump-start the reform and allow recent grads to remain covered. Needless to say, it’s definitely worth calling your parent’s human resources department or your insurance company to find out whether you are eligible for this option. If you are not eligible, you’ll want to find your own plan to cover yourself until the new law kicks in, or until you find a job with benefits. Here’s a look at your options:

• Individual Insurance Plan- affordable option if you’re healthy
• Short-term Insurance Plan- ideal for those between jobs or those waiting for other health insurance to start (offers coverage for 6 to 12 months)
• COBRA- generally a last-resort option

Like anything else, shopping around will get you the best deal. ehealthinsurance.com is a very user-friendly site that lets you compare coverage and prices at a quick glance. Their “click to talk” feature enables you to have a representative call you immediately to answer any questions (I can personally vouch for phone service- the wait was minimal and they were very helpful). By providing your zip and answering a few questions, the site will give you a number of health insurance quotes. When you find the best plan to fit your needs, you can apply directly online.

Individual Plans are an affordable option if you’re healthy- plans range anywhere between $35/month to over $230/month depending on your health and what kind of coverage you need. Your payments are on a month to month basis and there’s no commitment, so you can cancel at anytime.

Short- Term Plans are designed to protect against unforeseen accidents or illnesses, rather than to provide comprehensive coverage, so typically they do not cover preventive care, physicals, immunizations, dental or vision care. Also, purchasing short-term medical insurance plan will make you ineligible for any guaranteed issue individual health plans commonly referred to as HIPAA Plans. (If you have a pre-existing condition and want to maintain your eligibility, you shouldn’t purchase a short-term plan.)

COBRA allows for continued coverage under a parent’s employer-based plan for up to 36 months after graduation. This option is pricey because you have to pay both the employee and employer portion of the premium, plus 2% for administrative costs. Generally, it’s a last-resort option for people with pre-existing health conditions who may have trouble getting individual coverage.

Check out these resources to help you save money and get the best deal on health care:

• Healthcare Blue Book- even with insurance coverage, shopping around for the best price is a smart idea! This is a great resource to help you determine fair prices for healthcare services in your area.
• Health Insurance 101- explains all of the health-insurance lingo (premiums, deductibles, coinsurance, etc.)

By: Erinn Carey

Tags: healthcare, insurance