Graduates Drop Health Insurance and Risk Future

Employment & Lifestyle Take Priority over Costly Medical Benefits

Sep 18, 2009

Graduates that don't enroll in a health plan after high school or college risk financial ruin in the future. Invest in a low-cost health insurance plan for security.

The economic downturn has left many young people searching for jobs and places to live after graduation. Employed or not, many high school and college graduates are in no hurry to seek health insurance coverage. While some young people still have the misconception that an accident or sudden illness can't happen to them, others just cannot afford to pay rent, juggle bills, and pay for health care, too.

Health insurance deserves top priority among life choices for young adults, especially since coverage can mean the difference between good credit and financial disaster. Still, many young individuals prefer to take their chances. Priya David, contributor to the online website CBS Evening News with Katie Couric, gives statistics in the online article, "Affordable Insurance Plan for Young Adults" (June 2009): "Insurers call people ... the "young invincibles" –19 to 29 year olds who don't get health insurance with their jobs and don't carry individual coverage, often because they consider it a major expense they can live without. Across America, there are 13.2 million "young invincibles," who make up 30 percent of all uninsured – a number that's expected to climb in this economy."

Health Insurance is a Financial Safety Net

What's the point of spending money on health insurance when one is young and healthy? The reality is accidents can happen regardless of age, and illness can strike when one least expects. Some young people believe it's better to put hard-earned money into a savings account or investments. Not so, according to Anna Bedsole, contributing writer for Coastal Christian Family magazine (August 2009, p.19). In the article, "Young, Healthy and Uninsured" Bedsole warns that a lack of coverage is a greater financial risk. "Medical debt is the leading cause of bankruptcy in America, and it always comes as a surprise. It is a smarter financial move to invest in a plan now than to be loaded down with unexpected bills."

As for thinking one can avoid sudden illness or avoid accidents, Susan Fitzgerald (Kaiser Health News) reports in an article published in the Philadelphia Inquirer that young adults are vulnerable to serious medical problems. In the article "Out of College, Out of Coverage" Fitzgerald reminds uninsured grads, "While young adults are generally healthy, they're at risk for serious problems, including accidents that land them in emergency rooms, and HIV and other sexually transmitted diseases. Chronic health problems, including obesity, high blood pressure, and diabetes, are on the increase among young people."

Not getting proper medical attention is risky when one is sick or injured. What's even more disturbing is the number of young people turning to the Internet to find solutions to medical problems. Some people surfing for treatments aren't choosing reputable sites for answers. Sites that advertise herbal remedies or alternative medical treatments may or may not be the wisest choices for treating an undiagnosed medical condition. The wrong treatment could make matters much worse.

Choosing a Low-Cost Health Plan for Young Adults

Due to tough economic times and the reality of the job market, some states have taken measures to help young adults stay insured under parent policies whether they attend college or not. Some insurance providers allow parents to choose whether or not to keep dependent adult children on a policy – in some instances to age 30. It pays to see which states and insurance companies are providing extensions to young people. Most importantly, don't wait until an accident happens or an illness strikes to see what's available. By then it'll be too late.

What type of plan should young adults consider? Working individuals should check with employers to see if the company provides any kind of medical plan. If there is no such plan, or if one is unemployed and not on a parent's policy, then seek out an independent insurance company. Search several reputable companies and the options each one offers in order to find the most suitable health plan for the best price. Comparisons can be done online, as well as in person or over the phone with an agent. Basic health coverage options should at least include:

Be sure to discuss with the company representative the options not covered – procedures such as elective cosmetic surgery or weight loss surgery, for example. Ask about rehabilitation therapies such as physical therapy, occupational therapy, and speech therapy, in the event of a debilitating illness or injury. Make sure everything is clearly understood about deductibles, co-payments, treatment authorizations, long-term hospitalization, and choosing a physician. And finally, find out what procedure should be followed should one become ill or injured out of state. Everything should be fully explained in the policy, as well.

It may sound like a hassle to do all the research, but the consequences of not having health insurance are much worse. Imagine owing ten or fifteen thousand dollars in medical bills and ruining one's credit by having to file bankruptcy. High school and college graduates are urged to take responsibility for their health care and enroll in a plan that will cover at least basic healthcare options. One may never have to use some of the options such as surgery and rehabilitation services, but it's good to know the coverage is there in case the unthinkable happens.

The copyright of the article Graduates Drop Health Insurance and Risk Future in Health Insurance is owned by Mary King. Permission to republish Graduates Drop Health Insurance and Risk Future in print or online must be granted by the author in writing.