Thursday, February 2, 2012

Young Graduates Save Money With Short Term Insurance

Lots of promising young adults are graduating from college or high school this month. Among the many new responsibilities that many will need to deal with, health insurance can be one of the most important things. While they are eligible to maintain their current insurance plans with their parents, they may be able to keep all the coverage that they need without spending so much for their parents' medical insurance package.
The PPACA or Patient's Protection and Affordable Care Act that was passed by congress allows all children to stay on their parents' policy until they are 26 years old. This is great if they are sick and not eligible for another plan. The plans often are much more expensive than plans that they can get on their own. It would be worth considering shopping around for other individual policies to save money until they get established in an occupation. Once they get a job with benefits they can cancel any plan at any time with no penalty.
Most of the time young people are healthy and do not need the extra benefits that usually come with the family plan. There are policies for individuals that have as good of benefits as any other plan. The problem is that those plans cost so much more than the major medical plans with fewer bells and whistles. Generally when you get a plan from your employer you are required to accept the benefits that they choose or opt out of the coverage altogether. Employees generally can not pick and choose which benefits they will want to keep and which ones they could do without. If they get rid of the benefits that they might not use, they could save a lot of money each month.
Lots of young people won't go to the doctor unless they are extremely sick. Especially guys are this way. If you look at your medical history and have not been to a doctor for a check up in several years, then a co payment for a doctor visit might be something you could do without. The copayment for doctor visits and prescription drugs are nice, but they cost a lot of money each month if you are not going to the doctor or taking prescription medications.
For young and healthy people, the most important thing is to have the hospitalization, emergency room, and major surgeries covered. If you go to the doctor you can always pay out of your pocket for the visit. If they get into a car accident or other unforeseen tragic event that causes hospitalization for several days or weeks, that is what they will need covered. Short term insurance plans save money and provide coverage for these emergency major medical plans until they get benefits with a new employer in a new occupation.

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