How New Grads Can Buy Health Insurance
New college graduates can stay on their parent's health insurance plans, but they should check out a few other options before they do so.
Question:
My daughter just graduated from college and doesn’t yet have a job that offers health insurance. She’s going to be moving to a different state. Can she stay on my insurance?
Answer: She can stay on your policy until age 26, but check whether your plan has in-network providers in her new state. If she goes out of network, she may pay a higher deductible and co-payments, or she may have no coverage except in emergencies. She could also buy a policy through her new state’s insurance exchange. (Healthcare.gov has links to exchanges.) If she’s not financially dependent on you, she may qualify for a government subsidy to help pay premiums. Subsidies are available to singles earning up to $48,240 in 2018.
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Or she could get a “catastrophic plan,” available to people younger than 30, which offers low premiums but higher deductibles and no subsidy. Catastrophic policies sold on eHealthInsurance.com last year cost an average of $201 per month, says Lisa Zamosky, of eHealthInsurance.
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As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
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