College brings so much freedom, whether you’re ready for it or not, right? You get to choose what your day-to-day life looks like, which feels amazing…usually. After the newness of your independence wears off, though, you start realizing the responsibility that comes with all the paperwork, and you just might feel like panicking. Student loans, student housing, and textbook funds are one thing, but what about insurance?
Do you know what you need to do to insure your future properly now that you’re away from Mom and Dad? I promise you, although words like Medicare and phrases like Affordable Care Act (also known as ACA or ObamaCare) are now things you need to know, you don’t need to panic–just know your options.
Is Your Own Student Insurance Plan A Good Idea?
If you are under the age of 26, despite the fact that you are no longer a legal minor, ObamaCare allows for you to still find insurance coverage under your parents’ plan. However, if you are under your parents’ health care, you must use their annual income as well as yours on your application.
Being listed as a dependent on your parents’ insurance policy may be a great alternative to finding your own policy. If you do not live with your parents in any capacity, it’s best to apply for your own plan, because what you save on a monthly fee will only be based on your income.
Subsidies (read: governmental assistance) to help pay for your own Medicare plan are available, but you must have at least a part-time job which allows you an annual income of at least $11,000 and no more than $40,000 for a single-person household before those subsidies would apply to your application.
On average, before any subsidy assistance is taken into consideration, college students pay around $257 a month for their own plan.
Two Insurance Options To Consider
If you would prefer to do your own research on what type of insurance would be most beneficial to you during your college career, there are three things you need to consider:
One: Special enrollment: Open Enrollment–even for college students– is November 1st through December 15, 2019. If you don’t make this deadline while considering your insurance options, there is such a thing as Special Enrollment which broadens the dates you can apply for insurance. Be aware that although choosing to leave your parents’ insurance plan at any time doesn’t qualify you for special enrollment, leaving the state for your schooling does.
Two: Catastrophic Health Insurance: If you’re under 30 years of age, and a fairly healthy young adult, it’s easy to think you’re too young to need insurance. Healthcare options such as Catastrophic Health insurance are made just for you!
You are allotted three healthcare doctor visits per year and are only there as assistance if you encounter an unforeseeable emergency. Although a catastrophic plan appeases most college’s requirements for college, you will still be required to pay the $90 penalty during tax season. The benefit of this plan is it will be a much smaller cost than other health plans.
Getting Help With Insurance Is Okay!
If you’re about to embark on the excitement of college life and would like to discuss your options before it’s too late, don’t be afraid to enlist the help of a trustworthy agent such as Michael Suhany out of Kosciusko County in Indiana. He will make your first-time insurance purchases much more understandable so you can focus more time on your college experience!