As graduates across the country are preparing for new adventures and responsibilities, the importance of affordable health insurance is becoming a reality. In a new poll released by UnitedHealth Group, Inc, over 2/3 of young adults in the US know they need affordable medical insurance, but over half of them say they don’t have the information they need to choose the right type of coverage to meet their needs.
1,000 young adults were polled and 67% of them haven’t made any plans for medical insurance coverage. While these 18 – 21 year olds know they need insurance coverage, they aren’t clear about the coverage they have through their parents and don’t even know when that coverage will end.
Young adults are in the largest and fastest growing group of the 46 million uninsured people in the US. This alarmingly large group of Americans, along with the 25 million underinsured, is facing incredible risk by not having appropriate coverage in the case of a medical need.
When you need affordable health insurance and you cannot get coverage through your employer, it can be confusing how to even begin the process of finding coverage on your own.
Determine your insurance needs: Before you can find the most affordable medical insurance, you need to understand how insurance policies work. When it comes to cost, there are two things to understand -the deductible and the co-pay. Nearly all insurance plans have both a deductible and co-pay you are responsible to pay.
The deductible is the amount of medical expenses you have to pay out of pocket before your insurance coverage kicks in. The co-pay is the portion of each individual charge you must pay, in addition to the insurance company’s portion. For example, if you have a $500 deductible, you are responsible to pay the first $500 of medical expenses per year, before your insurance company pays anything. With the co-pay, you must pay a percentage of each charge, often at the time of your service.
To help keep your health insurance affordable, you have options how you pay these expenses. If you are in reasonably good health, choose a lower deductible and higher co-payment. If however, you go to the doctor fairly often, you pay be better off with lower co-payments, but a higher deductible. Once your annual deductible is reached, you will have less expense through out the year. For the most affordable health insurance premium, choose both higher deductibles and higher co-payments. This will at least spread your costs out over a length of time.
You can compare rates and plans for medical insurance online. This way you can look at several different types of policies from different companies and take your time deciding the best option for your medical insurance needs.
It is very important for young adults to have a good understanding of the type of insurance they need. With the large number of health insurance companies, as well as the variety in policies and coverage, the only way to find the most affordable health care coverage is to do some research and compare your options. Most importantly, however, is to avoid going with non health insurance at all so you don’t wind up with huge expenses you cannot afford to pay.