5 tips to help graduates make the most of their health benefits

By Whitney Stidom, Vice President, eHealth

A record 3.9 million young adults will graduate from high school this year, with another 2 million young adults entering the job market after earning a college degree. While this is an exciting milestone for young adults and their families, it comes with new responsibilities.

For many, that may include selecting a health insurance plan, in some cases for the first time. Whether you're stepping into the workforce, continuing your education, or exploring other career paths, it is important to fully understand how to shop for and use health benefits.

Note: To review individual plan options and see if you may qualify for government subsidies to help pay for coverage, visit eHealth’s online marketplace to see plans in your area or speak with an eHealth licensed insurance agent at 1-855-532-0220, TTY 711 

Here are five strategies to help young people and their families understand this important aspect of adult life:

Stay on your parent’s health plan. Federal regulations allow young people to stay on their parent’s health insurance, in many cases an employer-sponsored plan, until age 26. However, a recent eHealth survey found fewer than half of young adults know they can stay on their mom or dad’s health plan until that age. This is often a convenient and cost-effective option to retain coverage, but be sure to check how the plan works, especially if you're moving to a different state or city for college or after graduation. Under some plans, moving to a different part of the country may put you outside of the insurance company’s provider network and result in higher out-of-pocket costs for accessing medical care.

Select a health plan through your college and university. For high school graduates enrolling at an institution of higher education, most colleges and universities require you to have health insurance. To help make that possible, many offer their own health plans. These plans are tailored for students and can be a good choice if you don't have the option to stay on your parents' plan or are going to college in a different state. Compare the costs and benefits under your school’s health plan to plans available in the individual market to see what works best for you.

Enroll in employer-based coverage. Starting a new job? Many employers offer health insurance as part of their benefits package. In fact, eHealth’s survey found 79% of young adults consider health benefits a high priority when starting a new job. Most employer-sponsored plans provide comprehensive coverage, and your employer may cover a significant part of the monthly premium. If it takes multiple months to land your first job, or if your company’s health coverage doesn't start immediately, consider a short-term health plan to help bridge the gap. Short-term health insurance is an affordable, flexible option for those needing immediate, temporary coverage but it has limitations, like exclusions for pre-existing conditions and essential health benefits.   

Note: To review short-term health insurance plans in your area, visit eHealth’s online marketplace or speak with an eHealth licensed insurance agent at 1-866-327-1016, TTY 711 

Consider an individual plan. If you're not covered by a parent's plan or an employer, you can enroll in an individual health plan, which can be purchased through private marketplaces or government exchanges. It’s important to compare plan options from competing insurers. Look beyond the monthly premium to understand deductibles, copays, and out-of-pocket costs, all of which can impact how much care will cost. To help save, determine if you qualify for health insurance subsidies available through the Affordable Care Act. This may be overlooked by some, as only 5% of young adults realize people can earn up to about $60,000 per year and still qualify for government subsidies to make these plans more affordable.

Note: To review individual plan options and see if you may qualify for government subsidies to help pay for coverage, click here to eHealth’s online marketplace or speak with an eHealth licensed insurance agent at 1-855-532-0220, TTY 711 

Understand how Health Savings Accounts (HSAs) work: Young adults or anyone who rarely visits the doctor or uses prescription drugs should consider an HSA-eligible health plan. These plans often have higher deductibles but are triple tax-advantaged, allowing you to save pre-tax money for future medical expenses. Many employers also contribute to HSAs, making them a smart choice for healthy young adults. The money in your HSA is yours to keep and can roll over and grow from year to year, enabling you to save for short-term and long-term health care costs.

Navigating health insurance as a recent high school or college graduate can seem daunting, but with the right information, you can make informed decisions that suit your needs. Whether you stay on a parent's plan, enroll in employer-based coverage, or purchase an individual plan, understanding your options will help you secure the best coverage for your situation.

Congratulations on your graduation, and here's to a healthy future!