By John E. DeGruttola
It’s one of the most important days of your life. You’re graduating from college. You stand tall on stage in your cap and gown, ready to take your place in the universe. You’re filled with emotions of joy, pride and anxiety. By society’s standards this day marks the day when you move from childhood to adulthood. It doesn’t take long for you to realize that everything has changed. How will you protect yourself from unforeseen circumstances?
As a new graduate venturing out into the world, one of your first challenges is securing health insurance. Most health insurance plans have eligibility guidelines that state that children can continue coverage under their parent’s plan until they turn 19 years of age, unless they are enrolled as a full-time student, which extends coverage until they turn age 23. Purchasing health insurance can be a daunting task for most mature adults, let alone a new graduate.
Where do you begin? Who do you turn to for help? One of the best places to start is the Internet. It’s a great way to research local carriers, garner unbiased information from established governing organizations and get a glimpse into what health insurance offers to consumers. Your next step is to find a trusted agent in your community. An insurance agents’ goal is to present viable options and identify the best value for your healthcare needs. Also, seek advice from your friends and family to find out who they would recommend. And finally, you may want to check out your state’s Bureau of Insurance as they are a wealth of information as well.
Secondly, how do you determine what you need? The first step is to review your healthcare needs. How much do you spend every month on healthcare, such as physician visits, prescription medications, and preventive care? Knowing your expenses enables you to determine the amount of coverage you need. Also, evaluate how much you can afford on a monthly premium.
Look at it as if you were buying a car. You would research the type of car you like; decide on how much you can afford on a monthly payment; check out the car specifics—color, manual vs. automatic, safety features, service guarantee, etc.; and then make your decision. Buying individual health insurance is very similar. You want to consider all of your options before you buy. Being hasty may get you a lemon and that can cost you dearly in the long run.
Third, review your medical history. Do you have any current or past health conditions that will factor into a carrier’s rate? Examples of conditions include high blood pressure, high blood sugar and asthma. An insurance carrier reviews your medical history and rates are based on the information you provide about your health. Sometimes they will ask for additional information from your physician. When the carrier isn’t able to obtain necessary information, they usually issue a higher premium rate. Your age, health status and lifestyle habits all factor into whether you are covered, or covered at a higher rate. For example, if you are a smoker, you will typically pay more for individual health insurance than a non-smoker, as will people that are overweight or have past or current health conditions.
Most of all you need to be patient. You wouldn’t purchase the first car you saw on a dealer’s lot. The same holds true with purchasing health insurance. Being a smart shopper can put more money in your pocket and help you rest easier. It’ll make stepping out into the world just a little bit easier.
John E. DeGruttola is senior vice president for sales and marketing at Optima Health