Frankly speaking, choosing a Health Insurance plan is usually the smartest way to help secure your future as young adults. It doesn’t matter if you are a student or out of school, the truth remains that you’re on your own making choices for yourself. Now, what choice is right for you? In truth, choosing the best Health Insurance plan for young adults is very much essential.
One thing that might not be on your radar at this time is getting health insurance. But it’s a big problem. Especially when you consider that the average visit to the emergency can cost more than $1,200.
Continue reading to get an overview of health insurance options for young adults, including students, non-students, under 26 and over 26.
Best Health Insurance Plan for Young Adults
The good news is that your health insurance will probably be cheaper than for the elderly. Health insurance is one of the types of insurance where your relatively young age plays into your benefit. Because age is one of the main factors that determine the cost of health insurance.
Fortunately, it should be easy to find an insurance plan. Under the ACA, young adults have many health coverage options. This is very good news as young adults often go through a period of transition between student life and work life. Especially when they are looking for affordable health insurance while having a tight budget.
So, if you are under 30, you can take out health insurance in several ways, some of which are designed specifically for you. Here are different ways to get health coverage.
Stay on Your Parents’ Plan – an option up to 26 years
The ACA allows adult children to remain covered by the parent’s health insurance plan up to the age of 26. This applies to parental health insurance that you can obtain from an employer, HealthCare.gov, a state exchange system or the private health insurance market. When is the parent’s health insurance plan the best choice for young adults and students?
A parent health insurance plan can be beneficial if you are already registered and need access to comprehensive, affordable benefits that meet the ACA requirements.
You can stay in the parent’s plan until age 26, even if:
- Employed with access to benefits
- In college
- Not in college
- Living at a separate address from your parent(s)
Cost: Is your parents’ plan the most economical option?
Eligibility for Grants: Are you eligible for premium credits and cost-sharing grants if you purchase your own coverage through an exchange?
Access for Providers: Do you live near the network providers included in your parent’s plan?
Student Medical Insurance from Your University
Some colleges and universities still offer important health insurance plans to their students. These health plans for students are generally considered qualified health coverage that meets the individual mandate of the ACA.
Of course, you will want to verify your school’s plan to confirm it.
Occupational Health Insurance for Young Adults
Once you get a full-time job, you can find an employer who offers guaranteed group health benefits and who are in compliance with the ACA, which means you can not deny coverage.
When is work-based coverage the best health insurance for young adults and students?
When you have a full-time job and have access to health insurance through your workplace, this is often a desirable option. Because employers can cover some or all of your costs. Related to premiums. You may be subject to a waiting period before the start of your benefits.
If you are under 26, you can choose to continue to benefit from your parents’ health insurance plan.
In addition, people age 26 or older who have access to affordable employer-sponsored health insurance will not be eligible for savings offered through exchange-based plans.
According to HealthCare.gov, “an employment-based health plan is considered” affordable”. Especially, if its share of the monthly premiums for the least expensive self-sustaining coverage. And compliance with the minimum-value standard is less than 9.56% of income. If under these measures, health insurance coverage in the workplace is not affordable. Young adults and others can shop in the health insurance market and receive income-based subsidies.
Individual Main Medicine: Patient Protection and Affordable Medical Care Act (ACA)
Individual ACA plans (commonly known as “Obamacare”) may cost a little more than temporary health insurance but offer the most complete benefits.
If you do not have access to a parent’s plan or employment-based coverage and want guaranteed benefits that include free preventive care services. And health care services as part of the 10 Essential Health benefits, the primary health insurance is your solution.
You can have several important medical options. You may be eligible for a bonus depending on the size of your home and your income.
If you are under 30, you may qualify for a catastrophic health insurance plan. Availability varies by state and region, and Obamacare grants do not apply to catastrophic plans.
Check if You Qualify for Medicaid
Medicaid provides free or low-cost health insurance for eligible people. Each state has its own program and the eligibility criteria vary from state to state.
When is Medicaid the best coverage option for young adults and students? If you meet Medicaid eligibility criteria, Medicaid is probably your best option.
According to the ACA, some states have extended Medicaid eligibility to adults under the age of 65 who earn up to 133% of the federal poverty line. For a single-person household in 2019, this represents $12,140.
So, what is the best health insurance for young adults?
There is no one, the best health insurance option that suits all young adults. The health, financial situation, employment situation and other circumstances of each person’s life will determine which health care coverage makes the most sense.
Take a look at the Market (Healthcare.gov)
Created with the Affordable Care Act (ACA), the Healthcare.gov market provides a centralized starting point for the purchase of health insurance plans that comply with the ACA.
You will also find short-term health insurance options for your area, but some states use their own market to list options and for residents to get coverage. Depending on the income and the choice of plan, cost-sharing insurance and premium insurance may be offered for market plans.
As your income increases, the cost-sharing provisions are phased out, leaving only the premium payment, which then disappears at a higher income level. The ACA Marketplace offers a list of the required coverage, which includes:
Several other related coverages are included, but most plans do not include dental care or eye care for adults. However, dependent children have coverage for dental and vision care. If you choose a Marketplace plan and need a vision or dental care, consider using a discounted dental plan or vision plan.
The market plans are arranged by metal groups. Bronze level plans have the lowest premiums but also the largest expenses. Starting with the Silver Plans, you may be eligible for the cost-sharing and premium subsidies that reduce the overall costs of your health insurance through a tax credit. Gold and Platinum plans generally offer higher levels of coverage and lower rates in exchange for higher premiums than the Bronze and Silver plans.
Catastrophic Health Plans
If you are under 30, you are also eligible to purchase a catastrophic health insurance plan. The franchises are high with catastrophic plans, but the premiums are low. Healthcare.gov advises that if you are entitled to a tax credit based on your income. A bronze or silver plan may have a better value than a catastrophic health plan, which is not eligible for credit grants premium tax.
Expect a deductible of $7,900 for catastrophic coverage in 2019, after which the insurer will pay for all covered services without coinsurance or co-payment. All catastrophic health insurance plans do not offer preventive care. Recipes, lab services, radiology, and other services are often not covered either. Therefore, it is important to understand what is covered and how this coverage is deficient.
It is better to think of catastrophic coverage as hospital coverage or coverage for long-term illnesses. In fact, a catastrophic health insurance plan makes the consumer responsible for many small and medium expenses and limits their potentially higher expenses.
Short-Term Health Insurance Plans
If you are between two registration periods and do not have an eligible life event that allows you to register with a special registry, a short-term health insurance plan may be an interim solution. The advantages of a short-term health insurance plan are that you can sign up at any time. And also that premiums are often more affordable. However, premiums are lower for several reasons.
It is not required that short-term health plans have the same guarantees as plans that comply with ACA. Which means that some preventive services may not be covered. Another important consideration is that pre-existing health problems may not be covered.
Short-term health insurance plans are now available for periods of up to 364 days. A significant improvement over previous ACA rules that limited short-term health insurance to 90 days.
Best Health Insurance for Young Adults
It is difficult to find health insurance providers that offer coverage everywhere; The options available vary by market.
However, once you have chosen a plan, you will be covered anywhere in the United States. Although HMOs can only provide emergency care when you travel to other states. Look for health insurance companies with a wide network of providers, but closely monitor deductibles, coinsurance, and unpaid rates if you choose a plan that does not qualify for an HSA. Some of our favorites include:
UnitedHealthcare, the largest health insurer in the United States, offers the cheapest health insurance provider, but also the largest national provider network.
Expect a wide range of online tools to manage your health insurance account. Including the ability to apply for approved prescriptions and online access to wellness programs.
UnitedHealthcare offers the most common types of health plans, including HMO, OPP, and HDHP.
Compensation plans, which can be used to complement existing health plans, are also available.
Mainly focused on the Western States, Kaiser Permanente has a network of more than 22,000 participating doctors in its many hospitals and medical centers.
For cost-conscious consumers, Kaiser Permanente is a solid option and offers more affordable options than some competitors. Because the insurer uses its own network of providers.
Kaiser Permanente offers an HSA option for all types of plans, but deductibles can be high.
If you plan to use an HDHP with Kaiser Permanente, double check your budget to make sure you can contribute enough to your account to cover out-of-pocket expenses.
Blue Cross Blue Shield (BCBS)
Blue Cross Blue Shield forms an extensive national network through its 39 regional companies.
Although it is best known for traditional health insurance plans, BCBS also offers highly deductible health insurance plans that can be combined with a tax-efficient HSA to reduce premiums and build a savings nest.
The BCBS network of providers is one of the largest in the country and the choice of plans ranges from cost-effective HMOs to PPOs based on options and HDHP.
Although limited to a dozen scattered countries, Cigna has become a highly respected health insurance provider, with an extensive network of HMO and PPO service providers.
The Connecticut insurer has helped protect its customers from catastrophic expenses since 1792. The company also offers dental and vision plans to complement its health insurance offers.
Cigna also offers high-deductible health insurance plans if you are interested in a health savings account.
However, short-term health plans are not available.