Dec 29
Out of the House and on Your Own?
Not necessarily. College graduates without a job with health insurance benefits and no extra cash to spend on monthly premiums may feel that they have no alternative but to use prayer and multi-vitamins as their only form of insurance.
COBRA is a federal law that handles the question of young adults and health insurance. It stipulates that young adults can still be covered on their parents’ policies even after they are no longer a dependent. It varies from policy to policy, but usually a dependent is defined is a child over the age of 19 or a college student under the age of 22.
COBRA does not state, however, that that coverage will be offered under the same payment plan as it did when the young adult was still classified as a dependent. A premium and a deductible will apply and the employer who provides the insurance won’t pay the full premium.
Depending on the policy, this may be just as expensive as taking out a personal health insurance policy, but it can be beneficial if its only temporary. Alternatively, a short-term health plan is an option, but it’s only a good idea if permanent coverage will definitely be available when the policy expires as they are non-renewable.
They may not be low-cost or free, but there are health insurance options available to those who are just starting out in the world.
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June 8th, 2007 at 1:25 am
COBRA is a great option in many states; Maine is not one of them. At least, my family’s experience leads me to that conclusion. COBRA insurance coverage for our little family of three at my wife’s former job ran a whopping $1250 PER MONTH… no small potatoes for the average income, I daresay. COBRA for me alone through another source pushed the $500 mark.
The coverage options are certainly there, but if you live where I live, you had better be able to afford some hefty out-of-pocket premiums