Archive

May 20, 2004

Ways for recent college graduates to stay covered or find health insurance

• Stay on Your Parents’ Insurance. Students who are covered through a parent’s insurance may be able to continue their coverage as a dependent. Some employer-sponsored health plans will allow young adults to retain their dependent status up to age 23, even if they are not full-time students, so long as a parent is their primary means of support. Another option may be to continue coverage on the parent’s plan through COBRA (Consolidated Omnibus Budget Reconciliation Act). COBRA legislation allows students who are losing their dependent status to extend coverage for up to 36 months. COBRA rules generally apply to employers with more than 20 employees. To find out if you qualify, contact the human resources department of your parent’s employer. Be aware that you will have to pay the full cost of the premiums, which in most cases will be substantially higher than what you (or your parent) paid.
  
• Short-Term Insurance. Short-term insurance is a non-renewable, inexpensive source of coverage that is intended for recent college grads, employees waiting for group coverage to begin or anyone between jobs. Policies can extend up to 18 months. For example, the UW Alumni Association offers health insurance through Grad-Med.
  
• Individual Health Insurance. The availability of health insurance plans that sell policies directly to individuals varies by county in Washington state. Check AHIRC.org or the Office of the Insurance Commissioner’s Web site, www.insurance.wa.gov, for a list of authorized health plans in your area. Selecting a health insurance plan can be a complicated endeavor. Call the State Health Insurance Benefit Advisor (SHIBA) helpline for advice at 1-800-397-4422.
  
• Basic Health Plan Basic Health (BH) is a state-sponsored program that provides affordable health care coverage to low-income Washington state residents whose family income falls within specific guidelines (under 200 percent of the federal poverty level). Premiums are low and based on family size, age and income. However, there is currently a waiting list of nearly 29,000 people. As of spring 2004, there is approximately a nine-month wait to get on Basic Health unless you are under age 19 or pregnant.