Health Insurance 101: A Guide for Recent Graduates

Graduation is an exciting milestone that marks the beginning of a new chapter, usually entering the workforce. As you wade into the job market, securing health insurance is an important step.

But what if your new job doesn't offer health benefits right away?

Thankfully, you have a few options to bridge the gap until coverage kicks in. Here's a breakdown of your health insurance choices during this time:

1. Staying on a Parent's Plan

Many employer plans allow young adults to stay on a parent's plan until age 26.

• Pros: Familiar coverage, potentially lower cost.
• Cons: It may not be an option for all policies, depending on your parent's plan rules.

2. Short-Term Health Insurance

These plans offer temporary coverage, typically for a few months.

• Pros: Often more affordable than traditional plans, good for short-term needs.
• Cons: Limited coverage may not cover pre-existing conditions or be renewable.

3. Health Insurance Marketplace Plans

The government-run marketplace offers a variety of ACA-compliant plans with guaranteed coverage.

• Pros: Depending on income, comprehensive coverage options and financial assistance may be available.
• Cons: Monthly premiums can vary, coverage options may be limited, and you may be required to do more research to find a good plan fit.

4. Private Individual Health Insurance

You can purchase individual plans directly from insurance companies.

• Pros: A variety of plans to choose from may offer more flexibility than marketplace plans.
• Cons: Can be expensive, pre-existing conditions may affect eligibility or cost.

When evaluating your health insurance options, you must consider your individual needs and budget. If you're healthy and expect to find a job with benefits soon, a short-term plan might be sufficient.

However, if you need more comprehensive coverage or have pre-existing conditions, exploring the marketplace or private plans is a better choice.

Remember, this is a temporary bridge. Once you secure a job with health benefits, then you should transition to their plan as soon as possible. Maintaining continuous coverage is important to avoid any gaps that could impact your future insurance options.

To get started, research plan options in your area, marketplace websites, and private insurance companies. Seek to match the available choices with your budget and health needs.

Contact one of our insurance agents for personalized guidance if you're unsure. By understanding your health insurance options, you can make informed decisions during this exciting time in your career journey.