With all the fuss about the new policy, open enrollment period, the subsidies given by government and the necessity to have a health cover has created new choices and issues at the same time for the new college grads.
Some of the choices they make are; Mom & Dad’s plan, individually purchased coverage, short-term coverage, etc., but there is a whole new lot of options coming on for them.
How will health insurance options of today change for graduates when the last big provisions of the health reform law come into effect from January?
Mom & Dad’s health insurance plan – A parent health insurance plan is best for you if you are thinking of moving back to your parent’s place, and you are looking for quality coverage or employer-based coverage is not available at the moment. With the help of the Affordable Care Act (ACA) now a person graduating from college can stay insured under his parent’s health insurance plan till the age of 26. This is a very nice option for some of the graduates. But there are negative sides of this, like increased premium for the parents, or if you are not in the state then it is not possible to get the assistance of network doctor at the time of requirement. So these are the things that can hamper the benefits of your coverage.
In 2014: You will be treated as a holder of a health plan with your parents till the time you turn 26, but after that you are supposed to purchase a health cover of your own, in order to fit in the requirements of ACA.
Traditional individual health insurance plan -if you are looking for quality coverage and do not have an option of employer-based coverage at the moment, or you have an ambition of being financially independent, then you should go for a traditional major health insurance plan for yourself. A person with good health has many good and affordable options to choose from.You can get the best for you by getting the best information about your plan from an online marketplace. It is to be kept in mind that this is possible to decline coverage based on pre-existing conditions until 2014
In 2014: by the start of 2014, most of the people who are not covered under employer-based insurance will have to purchase these individual insurance plans. It will be a good thing if you will purchase one now. There is a chance of you getting the benefit of subsidies in 2014.
High-deductible health insurance plan – if you are not covered under any employer-based health insurance and want quality coverage, but do not have the need of it, as you are in a good health conditions and are not taking any kind of medical drug regularly, then you should go for a high deductible insurance plan. These are the traditional insurance plans with higher deductible. Here the meaning of higher deductibles is lower monthly premiums. Some of the higher deductible plans can be used in the health saving accounts, by which you will be getting some tax advantage and saving a considerable amount of money.
In 2014: At this time also the high-deductible plans and Health Savings Accounts will be available. Apart from these there will be plans available for everyone which are now a days only there for the people below 30 years of age.
Short-term health insurance plan – If all you want is the basic emergency coverage, or your employer-based coverage is not enough for you, then a short term health insurance will be a good option for you. The short term health insurance plans are easy to qualify and quite affordable. But it should be kept in mind that the short term plans do not cover the pre-existing conditions, preventive care or prescription drugs. You can easily purchase a short term health insurance plan.
In 2014: the short term health insurance will not be complying with the requirements of the health reform law in 2014. So you will be subject to a tax penalty on the federal taxes if you stay uncovered from a qualifying health plans for more than 90 days.
Going uninsured – It is a matter of concern that most of the young Americans are uninsured these days. The idea of health insurance sounds foolish at the time you are young and healthy. But a single medical emergency can cost to more than you can ever think with all the medical expenses these days. the success of the health reform will be vague without the involvement of young and healthy individuals.
In 2014: it is going to impact your finances if you are uninsured in 2014. Most of the uninsured people will face a tax penalty of 1% of their income or $95 (whichever is greater) and the penalty will keep increasing in the coming years.
Bristy Francis has been a specialist in the field of health insurance since 2008 counseling hundreds of individuals and families on policies which may be right for them.