After college, your health insurance coverage can change, and it’s important to understand what your options are. Here are the main scenarios:
- Stay on your parent’s insurance: If you’re under 26, the Affordable Care Act allows you to stay on your parent’s health insurance plan, even if you graduate from college, as long as you haven’t turned 26. This is often the most affordable option for recent graduates.
- Employer-sponsored insurance: If you get a full-time job that offers health insurance benefits, you may be eligible to sign up for their plan. Make sure to review the benefits and cost options that are available to you through your employer.
- Marketplace coverage: If you’re not covered under your parent’s plan or employer insurance, you can apply for coverage through the Health Insurance Marketplace. Depending on your income, you might qualify for subsidies that can help lower your premium.
- Medicaid: If you meet certain income and other criteria, you may qualify for Medicaid in your state. This is a low-cost or free health insurance option for those with limited income.
- Short-term plans: Some graduates who are between jobs or waiting for employer insurance to begin might opt for short-term health plans. These are usually cheaper but may not cover everything and have limited benefits.
- Stay uninsured: Some young adults opt to go without health insurance, but this can be risky in case of an unexpected health issue or emergency. You might also face penalties depending on the laws in your state (though the federal penalty for not having health insurance was eliminated in 2019, some states still have penalties).
Each option has its pros and cons, so it’s a good idea to assess your health needs and financial situation before making a decision.
