Consumer

3 On Your Side: Graduation & Health Insurance

PHILADELPHIA (CBS 3) ― Graduation is an exciting time as young people are about to embark on a new adventure. But as 3 On Your Side's Jim Donovan found out, picking up that college degree frequently means giving up the security of health insurance.

Many young people have health coverage through their parent's insurance policies.

But in many cases, that coverage ends the minute college does.

In fact, more than 13 million Americans between the ages of 19 and 29 don't have health coverage at all.

Right after graduation, many college students quickly learn they're missing something important, health insurance.

"Benefits will be cut off and you're free to go find your own coverage," said Robert Petcove president of Advanced Benefit Advisors Inc.

"I haven't had insurance since 2006," said Shawn McQuaide.

That was the last time she was a full time student and covered by her parent's insurance policy.

Without a full time job that includes benefits, she has no insurance plan.

"The cheapest one that I saw was about $350 a month," said McQuaide.

But there are ways to find more affordable coverage.

Some options:

-Go back to school. Even if it's online, you may be able to stay on a parent's policy.
-Check your alumni association. Some offer catastrophic and medical insurance plans for grads.
-Choose a limited benefits plan which can help pay for serious injuries.
-Search for a high deductible policy.

"You can really decrease your definite cost or your premium to have a higher deductible up front which you are responsible for, before the insurance company kicks in their portion," said Petcove.

Some states now allow you to stay on a parent's policy longer even if you are not a student, like New Jersey.

"Any children that either lives in your home or you claim on your taxes you can actually keep those children under your plan up to the 31st birthday and you can pay a portion of the single rate," said Petcove.

It's also a good idea to shop around. There are helpful Web sites than can provide you with price quotes for different levels of coverage from various insurance companies.


RELATED LINKS:

Esurance Auto Insurance
Advanced Benefit Advisors
N.J. Division of Pensions and Benefits
eHealthInsurance

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