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Affordable Health Insurance Plans for Young Adults

So, you're in your 20s working your first job. Or maybe you're looking for your first job. In any case, you don't have much money and you need health insurance. Several affordable options are available, depending on what you're looking for in a policy, so you don't have to be in the vulnerable position of not having any health insurance at all. Think about what you can afford, what you have saved and your current health, and you can make a decision that will let you rest easy and still afford a night out from time to time.

  1. Parental Coverage

    • If you're 26 or younger, one of the most practical and affordable, albeit humbling, health insurance options is coverage under your parents' health insurance. Of course, this also makes your parents responsible for your insurance premiums. If you meet the age requirement and don't have access to any other health insurance (like through your own employer) this may be the best option both in terms of price and comprehensiveness.

    Work Coverage

    • If money is tight, it can be tempting to forgo health insurance through work. Group health insurance, like you get through your employer, is usually the most affordable health insurance to which you have access. It tends to be cheaper because the insurance risk is spread over the group. Of course, if your workplace is predominantly older, sicker people, you may want to get a quote on an individual plan, just for the sake of comparison. Usually, though, the work coverage will be more affordable, and it's guaranteed (your current health won't affect whether you get covered).

    Individual Health Insurance

    • Individual health insurance policies vary widely in benefits and in cost. If you're looking at an individual policy, you'll want to get several quotes from several different companies. Deductibles (the amount you're responsible for until plan benefits begin) make a big difference in the premiums; the higher the deductible, the lower the premium. It's important, though, to make sure you have the money to cover the deductible, should you be hospitalized. Co-pays and co-insurance also effect the premium. Health Maintenance Organizations, or HMOs, tend to be less expensive than other plans, but you also need to seek care within a network that may be restrictive.

    Medicaid

    • If you're truly impoverished, you should also check with your local social services department and apply for Medicaid, a health insurance funded by the federal government and your state of residence. There is usually no premium, and co-pays are very low. Medicaid qualifications vary by state, but if you're pregnant, have children or are disabled, you have a higher likelihood of qualifying. If your health care situation is dire, it's worth it to apply; there may be other programs or assistance for which you may qualify.

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