Health Insurance for College Graduates Part II

Student health insurance is typically less expensive when compared to a similar short-term policy. The major drawback is that payment is required in advance of six months to a year of the coverage. However, the policy is renewable as long as premiums are paid.

Short-term policies can only be held for six months to a year. Each time the coverage expires, a new application must be filed. Therefore, you must continue to stay in good health. Short-term policies are roughly double the cost of student’s policies.

Student health insurance policies do not offer very high deductibles, unlike short-term plans, which can have upwards of $5,000 for a deductible. The higher the deductible, the lower the premium is. However, this is not always the most cost effective method, as a lot of money will have to shelled out of pocket if the deductible is high. It is important to remember health insurance policies vary regionally in price.

For those with existing health conditions, COBRA is a good option. This federal law allows adult children to stay on a parent’s plan for 36 months. Employer-based or individual coverage is much better than student or short-term. However, it is more expensive. Under COBRA, you pay your share, as well as the employer’s share and a 2% administrative fee. One has a 60 day period after their child graduates to decide they would like COBRA. If the child gets sick during the period, coverage can be retroactively bought to help pay the costs.

If you have a graduating child who will need Texas health insurance, contact the professionals at Option 1 Health Insurance to find out more about your options.