In the next month or so, college graduates will step on stage to pick up their degree--and frequently step off as another member of the uninsured.
The reason: Most health plans drop coverage for dependents once they are out of school. If you lack a job with benefits, you'll have to buy your own insurance.
"Young adults probably have the weakest connection to employer-based coverage," said Sara Collins of the Commonwealth Fund, a non-partisan foundation that focuses on health-care issues. "They're more likely to get jobs that are low wage, part time or with small businesses that can't offer insurance."
Individual insurance has its bonuses, mainly that it stays with you no matter what job you have.
But it can get confusing and expensive.
In Columbus, Ohio, for instance, a 25-year-old woman who opts for a $5,000 deductible would pay $40 a month, according to eHealthInsurance, an online marketplace for individual and family plans. For a $1,050 deductible, she'd pay $23 more.
But in other cities, the difference is far greater. The same woman would pay $35 a month for a $4,000 deductible in Los Angeles. For a $1,100 deductible, the premium catapults to $524 a month, in part because of less competition for certain types of plans in California.
"This shows that carriers will price insurance quite differently," said Emily Fox, a representative for eHealthInsurance.com. "You really need to do some homework and consider what you need and can afford."
One thing is clear: You shouldn't skip on health insurance altogether. Several studies have found that medical expenses are the leading cause of personal bankruptcy.
So to minimize the cost, especially with such other expenses as housing and student loan payments competing for your paycheck, consider these options.
-- Get a temporary policy
If you'll be without health insurance for only a few months, opt for high-deductible, short-term coverage. You often can become insured within one day and stay covered for up to 12 months.
And since it's a temporary policy, you don't need to pay for all-inclusive coverage.
