Low-Cost Health Insurance Plans for Young Adults

No Need for Recent American College Graduates

To be Left Out in the Cold to Catch a Cold by Employers

With Help of Low-Cost Health Insurance Plans


Written by: Karen Benardello


While 19- to 29 year-old age group is one of the largest and fastest-growing populations in America, unfortunately it is also one of the largest groups in which the majority is not covered by health insurance. Luckily, several health insurance companies offer plans specifically tailored for young adults, based on their salaries.

Unmarried dependant children are often covered by their parents’ health insurance or by such government programs as Medicaid until they turn 19. Some health insurance policies, such as the Health Insurance Plan of New York (HIP), even cover full-time college students until they graduate. But once students graduate, they are left to find their own insurance plan, or go without it.

According to a new report from The Commonwealth Fund, the number young adults who are living without insurance hit 13.7 million in 2006; this means two out of every five recent college graduates are uninsured. This number can be reduced if graduates take the time to sort through the different plans offered and pick the best one suited for them.

College graduates all across the country are going without health insurance because their employers refuse to offer medical benefits, since health insurance premiums (the money that companies pay for coverage) have skyrocketed in the last five years. Unfortunately, employers aren’t likely to change their minds anytime soon, but there are state agencies that can help young Americans find the best insurance plan.

One such agency for Massachusetts residents is Commonwealth Connector, a group that helps residents compare health insurance plans and choose the best one, based on their income.

The agency has an appealing, specialized program for young adults between the ages of 18 and 25. This program allows young adults them to stay on their parents’ health insurance for two years after they are no longer claimed as a dependent on their taxes, as long as the parents have a Massachusetts-based health insurance plan. Young adults who make less than $31,000 a year can join, and will receive help paying for physician check-ups, prescriptions and vision and dental care.

A low-cost insurance plan that’s available to young Americans in all 50 states, the District of Columbia and Puerto Rico is BlueCross BlueShield (BCBS). It offers several different plans, including a health maintenance organization (HMO), that share the cost of health care with their members, who pay a predetermined fee every month based on their salaries.

One attractive option for BCBS members is the Flexible Spending Accounts plan. With this option, members set up an account, and they determine how much money goes into it from each paycheck. Members pay for their medical care expenses with money from their accounts.

One state plan that residents of New York can apply for is Healthy NY; graduates are accepted as long as they meet the eligibility requirements. Such requirements include not being covered by any health insurance plan at all, or not having full, comprehensive coverage (e.g., only having coverage for doctors visits or hospital visits, but not both). Applicants must also submit proof of employment status and current income (the monthly maximum is $2,107, including all wages, salary, self-employment, interest and dividends, alimony, unemployment benefits and workers? compensation), as well as proof of residence. People interested in Healthy NY must also apply and be recertified every year.

On the other coast, young Americans can apply for one of the various plans offered by PacifiCare. With a variety of packages and price points, PacifiCare is attractive to a wide array of people.

One low-cost option PacifiCare offers is the Signature Value plan, in which members are a part of an HMO. This plan has contracted primary care physicians (PCP’s), in which patients pay a small co-payment, based on their salary, for every visit.

For people who want a larger option of which doctors they can visit, they can become a part of the Signature Freedom plan. Patients pay a small co-pay to visit one of PacifiCare’s contracted PCP’s, but if they wish to visit another doctor, they must pay the difference out-of-pocket.

Employers should pay for their employees’ health insurance as a basic courtesy for their work and contribution to the company, and the fact that being able to see a doctor is an essential human right. But companies are unfairly stopping this practice because it’s too expensive, and are therefore putting the burden of paying for health care onto the young Americans themselves. With the increase in the national unemployment rate, the decrease in the creation of new jobs, and banks not being able to afford to give loans, young adults are being forced to turn to the cheapest plans available. Luckily, there are financially-friendly plans available to recent college graduates in all 50 states.