Health Insurance for Graduating Seniors

    Health insurance might not be at the top of the list of concerns for recent graduates, but according to Michelle Bowdler, director of Tufts Health Services, it should be.
    “Young, healthy people might associate health insurance with a catastrophic event or chronic illness, but having health insurance ought to a key factor for them over the next several months,” she said.  “It’s critical that there not be a gap in coverage.”
    “Many young people continue to have a sense that nothing will happen to them.  Parents can still be a guide by talking to their graduating student,” she continued.
    Bowdler explained that almost all health insurance plans have a pre-existing condition clause that allows the company to charge more—or not cover—a pre-existing medical condition.  That means, for example, if your child is on asthma medication, uses insulin, or is being treated for a mental health issue, he or she might not have coverage if there is a gap between graduation and employment.  If the transition is made without a gap, health insurance companies are required to provide full coverage.  
    “If a student has health insurance through the university, then he or she is covered through the end of August,” Bowdler said.  
    “Parents should call their insurance company now and ask about their policy.  It’s important to be informed.  Research options for COBRA and look for short term, month-to-month contracts.  It’s possible with this economy that parents or students might be able to negotiate something more advantageous if they explain their position,” she said.  “Even insurance that has high deductibles will protect someone from a gap.”
    Some states, including Massachusetts, offer health plans choices with negotiated prices and benefits.  Parents and students should investigate what options are available for recent graduates.
    Bowdler noted that parents might balk at the idea of their child taking any job right out of college that is not on a clear career path.  “We don’t do our kids a service by saying that.  Many hourly wage jobs have health insurance coverage, which might end up saving families a $1,000 a month in COBRA payments.  Parents should encourage their children to take even a short term job to avoid a gap in coverage,” she said.