First, congratulations on your graduation. Finishing college is not for the faint-hearted, but it is the easiest aspect of it. Life after college is a whole new ballgame, and it can seem very daunting. As a fresh graduate, you are probably thinking of how to get a new job, branching out and staying on your own, or how to start paying off that huge student debt that you have incurred. The thought of finding a new health insurance plan probably did not cross your mind at all. This is where you have it wrong. So how do you find health insurance?
You can say, “I’m a very healthy person; I can do without an insurance plan for a few months,” but even healthy people need this coverage. Healthy people break their legs or arms while doing normal stuff like climbing a staircase or riding a bike. The average cost for treatment of a broken arm without surgery runs up to about $3,000. If this accident requires surgery, you find yourself spending up to a whopping $17,000. Imagine you in such a scenario without health insurance. Imagine coughing up about $17,000 for treatment of a broken arm. Now, imagine how far that money will go in settling off your student debts. That should be enough incentive.
If you don’t quite understand how health insurance works, here it is:
What Is Health Insurance?
Health insurance is like a system that protects you from paying the full cost of medical bills, whether you just need a minor flu shot or a major surgery. This insurance coverage pays a huge part of your medical bill, no matter the cost. Some also work by reimbursing you with whatever amount you have spent in the treatment of any injury or illness. So, you see, it is essential.
As a fresh graduate, what could be better than this? Most jobs offer health insurance, but you shouldn’t wait to get health insurance. Even easier, there are several health insurance schemes you can get as a fresh graduate. Considering your pocket, you may have to look out for affordable health insurance plans.
Below is a list of some health insurance plans.
Major Health Insurance Plans
● Health Maintenance Organizations (HMOs)
● Preferred Provider Organizations (PPOs)
● Exclusive Provider Organizations (EPOs)
● Point-Of-Service (POS) plans
● Health Savings Account (HSAs)
Health Insurance Plans You Can Use After College
After college, remember you are just starting life. You have your whole life spread out in front of you, and it is time to make major decisions. One decision you should never joke with is your health and choosing the perfect health insurance plan.
You already have many bills to pay; student debt, accommodation, transportation, etc., you do not need to pick a plan that is too expensive for now.
Off the books, here are two health insurance plans you can use after college:
● Your Parents’ Plan
Formerly, insurance companies drop dependents as soon as they graduate college, but now, thanks to the Affordable Care Act (ACA), all insurance companies are mandated to allow young adults to remain on their parents’ plan even after graduation. Until they clock 26 years, that is a whole lot of time to plan for your health insurance. Until then, forget the mad scramble and just enjoy the benefits of ACA.
● Your New Employer
If this is available, it is another stress-free way of ensuring you stay completely covered on health insurance as a fresh graduate. Most job offers include health insurance in their clause because employers know that good health equals productivity, and it is almost a win-win because, in this case, a premium is deducted from your paycheck. Still, it is way cheaper than finding your health insurance plan.
Time to Pick A Plan
Staying under 1your parents’ health insurance coverage is great, but it can be very limiting. You can’t move out of the vicinity because you have to stay in-network to use this plan.
Getting job-covered insurance is also very great, but honestly, not everyone will find suitable jobs fast. It is now time to pick an individual health insurance plan. Five plans were mentioned above, but the best for recent college graduates is the Health Savings Account (HSAs). This is because it is flexible with a low premium that is easily payable by recent graduates. In this plan, you open a particular account just for health savings. You control whatever goes into or outside this account, and the best part? You don’t pay taxes on this money.
Medical bills are becoming even more crippling each day, and as a recent graduate, a health insurance plan is the best if you don’t want to drown in the wave of expenses. Everyone is different, and you need to personally study each plan to know what works best for you as an individual. Good luck from here, and make sure you get a plan today.