All the fuss about the new policy, open enrollment period, government subsidies, and the necessity to have health coverage simultaneously covered new choices and issues for the new college grads. Some of the choices they make are.
Mom and Dad’s plan, individually purchased coverage, short-term coverage, etc., but there are a whole new lot of options coming on for them. How will the health insurance options of today change for graduates when the last big provisions of the health reform law come into effect in January?
Here’s How!
Mom & Dad’s health insurance plan—A parent health insurance plan is best for you if you are thinking of moving back to your parents’ place and looking for quality coverage or employer-based coverage is not available at the moment. With the help of the Affordable Care Act (ACA), a person graduating from college can stay insured under his parent’s health insurance plan until the age of 26. This is a very nice option for some of the graduates.
However, there are negative sides to this, like increased premiums for the parents, or if you are not in the state, then it is impossible to get the assistance of a network doctor at the time of requirement. So, these things can hamper the benefits of your coverage. In 2014, You will be treated as a holder of a health plan with your parents until you turn 26, but after that, you are supposed to purchase a health cover of your own to fit the ACA requirements.
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Traditional individual health insurance plan -if you are looking for quality coverage and do not have an option of employer-based coverage at the moment, or you have an ambition of being financially independent, then you should go for a traditional major health insurance plan for yourself. A person with good health has many good and affordable options. You can get the best for you by getting the best information about your plan from an online marketplace.
It is possible to decline coverage based on pre-existing conditions until 2014. In 2014: By the start of 2014, most people who are not covered under employer-based insurance will have to purchase these individual insurance plans. It would be a good idea to buy one now. There is a chance you will get the benefit of subsidies in 2014.
High-deductible health insurance plan—If you are not covered under any employer-based health insurance and want quality coverage but do not have the need for it, as you are in good health conditions and are not taking any medical drugs regularly, then you should go for a high-deductible insurance plan.
These are the traditional insurance plans with a higher deductible. Here, the meaning of higher deductibles is lower monthly premiums. Some of the higher deductible plans can be used in health savings accounts, by which you will get some tax advantage and save a considerable amount of money.
In 2014: At this time, high-deductible plans and Health Savings Accounts will also be available. Apart from these, plans are not available for everyone nowadays; they are only available for people under 30 years of age.
Short-term health insurance plan—If you only want basic emergency coverage or your employer-based coverage is insufficient, short-term health insurance will be a good option. These plans are easy to qualify for and quite affordable. However, it should be remembered that short-term plans do not cover pre-existing conditions, preventive care, or prescription drugs.
You can easily purchase a short-term health insurance plan. In 2014, short-term health insurance will not comply with the requirements of the health reform law 2014. So, you will be subject to a tax penalty on the federal taxes if you stay uncovered from qualifying health plans for more than 90 days.
Going uninsured – It is a matter of concern that most young Americans are uninsured these days. The idea of health insurance sounds foolish at the time you are young and healthy. However, a medical emergency can cost more than you can ever think of with all the medical expenses. The success of the health reform will be vague without the involvement of young and healthy individuals.
If you were uninsured in 2014, it will impact your finances. Most uninsured people will face a tax penalty of 1% of their income or $95 (whichever is greater), and the penalty will keep increasing in the coming years. Bristy Francis has been a specialist in the field of health insurance since 2008, counseling hundreds of individuals and families on policies that may be right for them.
