Today, getting handed a shiny new college diploma does not guarantee placement in a job. Employers will hire about 22% fewer grads this year than last. On top of that, fewer companies are offering health coverage to workers this year, due to grim economic conditions. Once their college health plan runs out, graduates are on their own as far as insurance is concerned. People in their twenties are the least likely demographic to have health insurance, with only about 70% of them covered. And about 34% of recent graduates lack insurance at some point during their first year after leaving school.
Young adults may feel invincible, but catastrophic illness or injury could occur at any time. Consider this: in 2007, medical expenses were a factor in 62% of bankruptcies filed that year. It’s too big of a gamble for people who can afford insurance to forgo it. Financial issues aside, people without insurance are also less likely to get preventive care, so smaller health issues may become larger concerns as time passes.
Graduates have a few options to be aware of. They may have the option of extending their coverage under their school’s health plan for a period after graduation. For students who were covered under their parents’ plans, the COBRA program will allow them to continue coverage for a few years, if the subscriber continues to pay the premiums out of pocket. Also, there are low-cost alternatives available for purchase, but many have deductibles and are good for catastrophic care only. Whatever route grads take, they should be aware of the dire consequences that forgoing insurance for any period of time can have.
See these two articles from the LA Times on the matter.
