Health insurance key for new grads
By SANDRA BLOCK
You passed your finals and graduated from college with honors. Now comes the real test — finding a job.
The good news: The job market for college graduates is improving. Employers plan to increase hiring of college graduates by 13 percent this year, the biggest gain since 2001, according to the National Association of Colleges and Employers. Even English majors are finding work.
The bad news: Your new job may not include health insurance, at least not right away. Many company-provided insurance policies don't kick in until you've been on the job for a few months. And some small businesses don't provide any coverage for their employees.
Don't look to Mom and Dad for help. In most cases, you're only covered by your parents' policy until age 23, and even then you have to be a full-time student.
MONEY WELL-SPENT
USA Today
Many graduates don't inquire about benefits when offered their first job, says Elizabeth Jetton, a financial planner in Atlanta. "The very idea of money going to health insurance doesn't really have a whole lot of meaning to them unless something goes wrong."
But if things do go wrong, forgoing health insurance could imperil your financial future and your health. A catastrophic illness or accident "can absolutely bankrupt somebody in a year's time," Jetton says. And if you develop a serious illness while you're uninsured, you may not be able to get health insurance in the future.
Some ways to make sure you're covered in case of a medical emergency:
PLANS, PREMIUMS VARY
For a 22-year-old non-smoker, premiums range from about $100 a month for a policy with a $250 deductible to about $40 a month for a plan with a $2,500 deductible, according to eHealthInsurance.
Healthcare giant Humana (www.humana-one.com) offers a plan for college graduates who need coverage while they're looking for work. Premiums for the HumanaOne College Graduate Health Plan, which is available in eight states, are up to 43 percent lower than those for a standard insurance plan, the company says.
While young and healthy workers can obtain catastrophic insurance relatively cheaply, many are still hard-pressed to pay the premiums and deductibles. That's where parents can help.
For example, if your child signs up for a consumer-driven health plan, you could agree to help cover the deductible, Jetton says.
And if your child has to wait a few months before employer-provided benefits are available, consider paying the premiums for temporary insurance coverage, Hurley says.
For more information, check out www.planforyourhealth.com, a Web site created by Aetna and the Financial Planning Association.
To get quotes on private insurance plans, go to www.ehealth insurance.com.
