Doctor's Orders: Know Your Health Care Options

Jessica Smith

When making the leap from college student to adult, the typical 22 year old is unlikely to consider shopping for health insurance. Unfortunately, the transition from student to civilian also means a change in health insurance coverage. According to the U.S. Census Bureau, in 2008, more than eight million young adults between the ages of 18 and 24 were uninsured, making them the largest segment of the uninsured population.

With the rise in unemployment and lack of new jobs resulting from the less-than-ideal state of the economy, the problem has no doubt compounded. But the decision to forego health insurance altogether could be one of the worst possible decisions—for your health and your wallet.

“I’ve never had health insurance,” said 22-year-old Ishita Chowdhury, first-year graduate student at the University of Alabama and recent graduate of the University of Georgia. “I’m from Bangladesh, and no one really has it there, so my parents always said compared to the amount of times you actually get sick in your life, it was more trouble, and money, than it was worth. “When I got into an accident last year though, I realized just how important having health insurance was.”

Chowdhury incurred a bill totaling close to $4,000 during her brief stay at St. Mary’s Hospital in Athens, Ga. All of which she is still paying out of pocket.

“I just wish I had had health insurance as a kid,” Chowdhury said. “Now is the worst possible time to try to and get something on my own; everything’s so ridiculously expensive.

“I feel like there are so many doctors’ appointments I could’ve had that I missed out on.”

While Chowdhury’s story, uncommon but not unheard of, can be viewed as something of a cautionary tale, a majority of students spend their lives securely under the blanket of their parents’ health insurance coverage.

As soon as they flip that tassel to the left, however, they find themselves alone, and in worst-case scenarios, unemployed and uninsured.

“For a lot of our young employees, this is the first time they’ve ever had to deal with benefits,” said Shirley Brock, Benefits Coordinator in the human resources department at the Medical Center of Central Georgia in Macon, Ga.

“So many of them are completely clueless when they come to me, but I’m glad to show them what’s best and what we have to offer them, especially since most of the time if they didn’t have that job, they wouldn’t have health insurance anyway.”

Aurora Ziobrowski, recent UGA graduate and corps member of Teach for America, a national non-profit that recruits recent college graduates to teach in low-income neighborhoods, can relate to that firsthand.

“When I found out that I got accepted at Teach for America, it was this huge rush of excitement and relief,” Ziobrowski said.

“I had no back up plan, and since my political science and psychology majors are more or less useless, I thought I was going to have to go to law school just to have something to do. Now I get to do something that I love, and I’m covered financially, at least for a while.”

It goes without saying that with finding a job, an apartment and the plethora of other pressures faced by new graduates, shopping for insurance can be a bit overwhelming. So if you’re in the market for a health plan, here are a few important things to keep in mind, courtesy of eHealthInsurance.com, an online marketplace that offers advice and lists sales quotes for health insurance plans:

A higher deductible means lower monthly payments
On a health insurance plan, the deductible is the amount you have to pay annually (not counting co-payments) before your health insurance kicks in. Health insurance plans come with various deductible levels, ranging from $500 or less to as much as $5,000 a year. Typically, the higher your deductible, the lower your monthly payment will be.

Location, Location, Location
While many states kick you off your parents' policy after you graduate from college, other states require your parents’ insurance to stick with you, sometimes until you're 26. To find out the rules in your state, visit the Kaiser Family Foundation Web site at statehealthfactsonline.org. You can also look up the rules on the Web site for your state's insurance commissioner at naic.org.

Also, health insurance rates vary across much of the country. Ironically, cities that have higher costs of living often have cheaper health insurance rates. Each state has its own rules and regulations that affect competition among health insurance companies. So, when you’re trying to figure out where to settle down, make sure to check out the prices on health insurance before you move.

UGA also offers a voluntary short-term student health plan for an average of around $850 per semester. And if health insurance just isn’t an option, the Georgia Department of Health offers a range of services at free clinics in every county. For more information, visit publichealthathens.com or health.state.ga.us. To learn more about UGA’s student health insurance, visit hr.uga.edu/benefits/stuins/stuins.html.

Photo Credit: iStockphoto