Health Insurance for Young Adults

Health insurance is a significant investment for all individuals, no matter the age group. However, as a young adult, choosing the right health insurance plan can be very confusing, especially when you are just starting to build your career or still in college. This article guides you through everything you need to know about health insurance for young adults.

Why Do Young Adults Need Health Insurance?

Young adults are often presumed to be healthy, energetic, and free of major medical issues, so they tend to put off purchasing health insurance. However, no one can predict when illness or medical emergencies may arise. Young adults who are uninsured are at a higher risk of facing financial disaster if an unexpected illness or accident occurs. Health insurance serves as a safeguard against extensive medical debt and helps you receive the appropriate medical care if and when you need it.

What Are the Risks of Being Uninsured?

When young adults choose to forego health insurance, they run the risk of facing numerous financial and medical issues. The following is a list of potential risks:

How to Get Health Insurance Coverage

It is essential to shop around when purchasing health insurance. Here are ways to acquire health insurance coverage as a young adult:

Through Your Employer

If you work full-time, your employer may offer health insurance as part of your benefits package. Your employer may also allow you to enroll in their plan as a dependent if you are a full-time student or under the age of 26. Be sure to check the cost and coverage of the plan and make comparisons with other options before making a decision.

Via the Health Insurance Marketplace

The Health Insurance Marketplace, established by the Affordable Care Act, offers insurance plans from different providers for individuals under 26 years of age. You will have a range of options to choose from with varying coverage and costs.

Through Medicaid or CHIP

You may qualify for low-cost insurance coverage through Medicaid or the Children’s Health Insurance Program (CHIP) if your income falls below a certain level. These programs provide comprehensive health insurance at little or no cost to eligible individuals.

Types of Health Insurance

Preferred Provider Organization (PPO)

A PPO is a plan that allows you to choose any doctor within the healthcare provider network without needing a referral. The plan also covers out-of-network care, although at a higher cost. PPOs usually have a deductible, co-payment, and coinsurance.

Health Maintenance Organization (HMO)

An HMO is a network plan in which you choose a primary care physician (PCP) who coordinates all your medical care. You can only see doctors and specialists within the HMO network, and you need a referral to see out-of-network specialists. HMOs usually have lower monthly premiums, but the out-of-pocket costs for medical services are higher.

High Deductible Health Plan (HDHP)

An HDHP is a health insurance plan that offers lower monthly premiums but has a higher deductible, which is the amount that you pay out-of-pocket before the insurance starts paying. HDHPs also offer tax benefits, and some come with a health savings account (HSA) that allows you to save pre-tax dollars and use them for medical expenses.

FAQs

Can I Stay on My Parents’ Health Insurance After I Turn 26?

No, you cannot remain on your parents’ health insurance after turning 26, even if you are a full-time student or no longer living at home. However, you can still purchase health insurance through your employer, the Health Insurance Marketplace, Medicaid, or CHIP.

Can I Be Denied Health Coverage?

Before the Affordable Care Act, insurance providers could deny coverage to individuals with pre-existing conditions. Still, under the ACA, insurance providers cannot deny coverage to anyone based on pre-existing conditions, and they are required to provide coverage for all essential health benefits.

What Is the Open Enrollment Period?

The Open Enrollment Period is when individuals can apply for health insurance coverage, make changes to existing plans, or choose new plans. The period usually runs from November 1st to December 15th every year. However, in some states, it may be extended.

How Do I Choose the Right Health Insurance Plan?

To choose the right health insurance plan, you must first determine your medical needs, including how frequently you visit the doctor, any prescription medications you take, and your preferred provider network. You should also compare the costs and coverage of different plans, including premiums, deductibles, co-payments, and out-of-pocket maximums.

What Is the Penalty for Not Having Health Insurance?

As of 2019, there is no penalty for not having health insurance, but you may still face financial and medical risks if you remain uninsured.

In conclusion, health insurance is critical for young adults to protect against financial and medical risks. Make sure to shop around and compare different plans before deciding which to purchase.