Is anyone in your household graduating this year? How about a relative, or the neighbor’s kid who shovels the snow or mows your lawn? If you know anyone graduating high school or college in the next few months, cut this column out and give it to them!
Graduation is a happy time, whether it is from grade school, high school, college or post-graduate studies. With graduation comes the need to make numerous decisions: What is the next step? More education? A Job? Another big decision that often coincides with graduation, and is easily overlooked at this busy time, is health insurance!
Most group insurance plans allow a child to stay on the health insurance plan until age 19 or, if you continue your education and are a FULL-TIME student, most plans allow you to stay on the plan until age 23. Be sure to check your health insurance plan to see what the age limit is.
Full-time college students on their parents’ insurance plan must provide proof of full time status EVERY semester. Most insurance plans want an original document from the registrar’s office with the raised school seal on the document.
If you are not continuing your education upon high school graduation, be sure to check the age limit for staying on your parents’ plan. Most plans are 19, some are 22 or 23. If your parents work for a company with more than 20 employees you can continue on the plan under the COBRA law. IT IS THE PARENT’S RESPONSIBILITY to notify the employer that a dependent child is no longer a dependent and that he/she wishes to continue benefits under the COBRA law. The child will come off of the parent’s plan and have single coverage under the COBRA law for up to thirty-six months or until covered under another group plan, whichever comes first.
Many colleges and universities offer student health insurance. All of these plans vary dramatically so I cannot comment on any plan without seeing the specifics. Most of these plans have very limited benefits and they may or may not cover preexisting conditions. Be sure to read the small print carefully. If it is very inexpensive, chances are the benefits are very slim. You usually get what you pay for.
Upon graduation from college, the goal is to get a job that provides health insurance but if that isn’t on the horizon, then you can continue under the COBRA law for thirty-six months, as stated above, if yoru parents worked for a company with more than 20 employees. If they did not, you will need to purchase an individual plan immediately.
When you collect benefits under the COBRA law you pay the same premium that the employer pays plus 2% for administrative costs.
Keep in mind too, that many companies terminate your coverage the day you graduate. Some companies will continue the coverage till the end of the month. It can vary from one company to the next, so again, do not take chances, call your insurance company and find out what their policies are.
Call your insurance agent or this office for more particulars on individual health insurance.
Irene Card & Betsy Chandler share the responsibilities of running Medical Insurance
Claims, Inc. a health insurance services company. If you have questions relative to this
column or other related topics, we invite you to call (973) 492-2828, browse our
past columns on our web
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