Graduations are in full swing and as parents we are all looking toward these kids’ futures. Whether they are heading to Trade schools, colleges, maybe straight to the work force or a discussion of a year off is in play or whatever the ‘next step’ may entail, we—the parents—should also think about these young adults’ health insurance.
Certainly there is no question they can stay on our plan until age 26. That option was one of the first laws set forth by the Affordable Care Act(ACA) back in March 2010. This was a real relief for most parents because prior to then, a young person had to be at least a ¾ time student to remain on the parents’ coverage.
Today one of the challenges being the limiting networks that some coverage provides. If you have coverage with a local network or even ‘slimmer’ meaning a particular hospital and provider system only, it could provide only limited coverage for the dependent leaving the area. If you will not be claiming the young adult they should consider looking into the Marketplace or state exchange that may be offered where they are headed.
However, for those going to a trade school or college out of the area, it may be cost effective to look at the student health insurance. In the past, these plans were ‘mini’ medical plans. Meaning, there was basic care offered at the Student Health Center and then a very limited benefit if the student needed additional care not provided by the Health Center. Since the ACA has been implemented, many colleges now offer more comprehensive medica coverage for minimal premium to the student/parents. For example, the University of Iowa and Iowa State University both have a very comprehensive traditional plan with copays utilizing Wellmark as the medical carrier and Delta Dental as the dental carrier. The enrollment requirement is five or more semester hours of classes. Students enrolled in less than five semester hours may choose to pay the health fee and obtain these same benefits. There are some limitations regarding labs, well woman visits, immunizations, some in office procedures, etc.. so it is important to verse yourself with the benefit structure.
The coverage offered at Iowa State was approximately $580 for the first semester and $812 for the second and summer covering the student for the full year. When you take the $1,392 divided by 12 that is shortly over $100 a month for this coverage. Again, this is for a student with 5 or more semester hours of classes. The premium would be higher if not meeting the requirement.
Look at where your student is headed for higher learning. There may be value to looking into the school’s student health plan as a worthwhile option.
A little more about us:
The Business Warrior group has some of the industry’s top experts in all the areas your business needs to be successful. Amongst the contributors is Janis VanAhn, owner of Health Insurance Advisor, LLC. For 19 years Janis has worked in and around the health insurance industry initially providing service to agents and employers related to employee benefits, individual healthcare and Medicare, while more recently becoming appointed as an individual agent with various quality carriers to provide this service to individuals through her own business.
Four years ago Janis was ‘blessed’ with being let go from her job at an insurance ageny. Staying within insurance was her path…but in what capacity. 2010 was the year Janis began her career as an independent insurance agent specializing in health insurance. Finding quality, cost-effective healthcare for individuals and families under age 65 as well as working with those who are Medicare eligible truly was her passion. She has made this a true specialty and positioned herself as someone to work with whether it is a financial professional or property & casualty agent with a client that needs assistance, to a group of seniors turning 65 and they keep receiving Medicare information and are confused about what to do.
Janis enjoys the one on one contact with clients as well as looking forward to speaking to groups about healthcare. Her excitement for this industry is what drives her to stay in tune with Healthcare Reform and what is currently happening and what will happen with coverage from now to past 2014.
‘Educating individual and Medicare consumers to make informed choices’ is her mission because if people are educated and understand, they will make informed choices that they are comfortable with.