COBRA or College Health Services
The complicated world of healthcare often leaves college students opting out of health insurance coverage. The “age out” of a COBRA policy, along with few eligible for coverage through employment contributes to students being at risk of one minor health problem without insurance being a devastating blow to their financial status. There are options available for those attending college.
You may be thinking that you are healthy, you rarely see a doctor, so you don’t want to spend money on insurance to cover those expenses when there are already so many bills piling up already. Just consider what could happen if you are in a car accident – even through no fault of your own. If the other driver is not insured, the medical bills will be your problem. Sure, you could sue the other driver to repay the money you will have to spend. That kind of law suit can take years, and huge lawyer fees, to win in court. In the mean time, you will have spent thousands of dollars on medical bills, rather than a few hundred on health insurance.
The answer may be as close as your campus. Many schools are now offering health insurance to their students through various companies. The level of coverage will vary by university, but all are hugely discounted from a standard insurance offering from a private insurer or HMO plan. You can ask an advisor at your school for more information, or you can search online.
When qualifying for a COBRA policy, there is a limit on the amount of time you can remain covered. The prices for the policy will vary based on the amount an employer contributes to the original insured person’s coverage. These prices are all likely to be immense. Many employers will contribute as much as 75% or more of the premium. For a person switching to a COBRA policy, the entire premium is now their responsibility. This puts the plan out of reach for most normally employed college students.
The coverage is meant to be temporary while the insured finds another healthcare plan. It was made mandatory back in 1985 that employers allow their former employees access to the health insurance offered for anywhere from 18 through 24 months. This was an attempt to make health insurance more accessible to all people in the United States, rather than someone getting a new job and having to go without coverage while they wait for the grace period at a place of employment to complete.
If you are eligible for COBRA coverage, and are able to afford it, then there is no problem. However, most of us cannot easily afford that kind of expense, and wouldn’t want to spend extra money on insurance that may or may not be used. Just don’t take the chance of having no coverage at all. One minor incident can change your future, and put you in debt for years. Search out coverage that you can afford by raising the deductible, or taking off a benefit or two. A few hours of research could end up saving you a decade of debt.
student-loans.net @ May 8, 2008