Young Adults: Embrace Insurance Exchanges

Young people should enrol in insurance exchanges because they are not immune to accidents or unexpected illnesses. A broken leg, for instance, could cost an average of $7,500 without insurance, and a three-day hospital stay could cost up to $30,000. In addition, one in six young adults has a chronic illness such as cancer, diabetes or asthma. Insurance exchanges are a way to protect oneself from financial ruin in the event of a medical emergency. Furthermore, young adults are recommended to have preventative care to monitor their health and wellness regularly, which is another reason to enrol in insurance exchanges.

Young people can stay on their parents' insurance until they are 26 (Affordable Care Act)

Young people can stay on their parents' insurance until they are 26 years old, thanks to the Affordable Care Act. This is a significant protection for young adults, as it ensures they have access to healthcare at a time in their lives when they might not be able to afford it otherwise.

Before the Affordable Care Act, many health plans could remove adult children from their parents' coverage because of their age. This often left college graduates and other young adults without insurance. The Affordable Care Act now requires plans that offer dependent child coverage to make this available until the adult child reaches the age of 26. This applies even if the young person is not a student, is not financially dependent on their parents, or does not live with their parents.

This change in the law has helped to alleviate the worry that many parents and their children had about losing health insurance after graduation from college. It has also helped to address the problem of young adults being the age group with the highest rate of uninsured individuals.

Young people can be added to their parents' insurance during the yearly Open Enrollment Period or during a Special Enrollment Period. A Special Enrollment Period is a time outside the yearly Open Enrollment Period when someone can sign up for health insurance, often following certain life events such as losing health coverage, moving, getting married, or having a baby.

Once a young person is on their parent's job-based plan, they can usually stay on it until they turn 26. However, it is important to check with the employer or plan, as some states and plans have different rules. For example, if a parent's plan is bought through the Health Insurance Marketplace, the young person can remain covered through December 31 of the year they turn 26 (or the age permitted in their state).

Preventative care is important for young people to monitor their health

Young adults have significantly lower rates of health care system utilisation compared with other groups but significantly higher emergency room visit rates. This suggests that young people are more likely to seek treatment for serious health issues rather than monitor their health regularly with preventative care.

There are many barriers to young people accessing preventative care, including cost, not having a primary care provider, living too far from providers, and a lack of awareness about recommended preventative services. However, preventative care can help young people avoid unexpected illnesses and accidents, which can be expensive. Preventative services can also help catch medical conditions before they become serious, helping to keep people healthy as they get older.

Insurance can help protect against unexpected illnesses and accidents which can be expensive

Young people may feel they don't need insurance, especially if they are healthy and rarely go to the doctor. However, insurance can help protect against unexpected illnesses and accidents, which can be expensive. Here are some reasons why young people should consider enrolling in an insurance exchange:

Protection from Financial Losses

Insurance provides financial protection against unexpected illnesses, accidents, and injuries. In the event of an accident, insurance can help cover the costs of medical treatment, surgeries, hospital stays, and rehabilitation. For example, the average cost of treating a broken leg is $7,500 without insurance. A three-day hospital stay can cost up to $30,000. Insurance helps to ensure that young people don't have to bear these costs alone and protects them from potential financial hardship.

Income Replacement Benefits

Accident insurance may offer income replacement benefits to those who are unable to work due to temporary or permanent disabilities caused by an accident. This provides financial support during the recovery period, helping individuals meet their financial obligations.

Peace of Mind

Insurance offers peace of mind and a sense of security. Knowing that financial protection is available in case of unexpected accidents or illnesses can provide reassurance. Accident insurance, in particular, can complement existing health insurance coverage and fill gaps, offering an additional layer of protection.

Affordable Options

Young people may assume that insurance is costly, but there are affordable options available. Health insurance plans can start at less than $10 per month, and three out of five people can get covered for less than $50 per month. Catastrophic plans are specifically designed for younger people, offering lower monthly premiums in exchange for higher deductibles. This means that young people can be protected in case of a medical emergency without having to pay large monthly payments.

Access to Preventative Care

All health insurance plans include certain free preventive care services, such as routine physicals, immunizations, and cancer screenings. These services can help catch medical conditions early on and keep young people healthy.

In summary, enrolling in an insurance exchange provides young people with financial protection, peace of mind, and access to affordable healthcare options. It helps safeguard against unexpected illnesses and accidents, ensuring that young people don't have to bear the full financial burden of medical treatment.

Young people can qualify for lower insurance prices and subsidies

Young people are often on a tight budget, so it's understandable that they may be hesitant to take on the additional cost of insurance. However, there are several reasons why enrolling in an insurance exchange can be a smart financial move for young people. Firstly, young adults may be able to take advantage of lower insurance prices. This is because, generally, young people tend to be healthier and have fewer pre-existing conditions, which insurers take into account when determining premiums.

Secondly, young adults may qualify for subsidies or tax credits that can significantly reduce the cost of insurance. These subsidies are often income-based, meaning that if a young person's income is low, they may be eligible for substantial financial assistance in obtaining health insurance. In some cases, individuals may even end up paying nothing for their insurance plan. Additionally, young people can also remain on their parents' insurance plans until the age of 26, according to the Affordable Care Act. This can provide comprehensive coverage at a lower cost, as the parents' plan often covers the dependents.

Furthermore, insurance exchanges often offer a range of plan options, allowing young people to choose a plan that fits their budget and needs. For example, catastrophic plans are designed for younger, healthier individuals who don't expect to need much healthcare. These plans have low monthly premiums and can provide financial protection in the event of a medical emergency. Similarly, bronze plans are another affordable option with higher deductibles and lower monthly payments.

It's important to note that the availability and specifics of insurance plans and subsidies may vary based on location and other factors. Young people should research the options available to them and carefully consider their personal circumstances when deciding on an insurance plan. By exploring these opportunities, young people can take control of their financial future and ensure they have the protection they need at a price they can afford.

Insurance can help protect against financial losses in the event of an untimely death

Young people may feel that they are saving money by not enrolling in an insurance plan, especially if they are healthy and rarely go to the doctor. However, insurance can help protect against financial losses in the event of an untimely death or accident. Here are some reasons why:

Protection from Financial Losses

Insurance is a way to manage your risk and protect yourself from financial losses. When you buy insurance, you are purchasing protection against unexpected costs, such as accidents, injuries, property damage, or even death. In the event of an untimely death, insurance can provide financial protection to your loved ones. The insurance company will pay out a sum of money to your beneficiaries, helping to cover any financial burdens they may face during that difficult time.

Affordable Coverage for Young Adults

Health insurance plans are more affordable than ever, with one out of three people finding quality health insurance for less than $10 per month, and three out of five for less than $50 per month. The Affordable Care Act also allows young adults to stay on their parents' health plans until the age of 26, which can provide financial protection at a low cost.

Capping Healthcare Costs

Insurance helps to cap the amount spent on healthcare in a year. Hospitalization coverage, for example, is a benefit that many health plans are legally required to cover. This means that whether you use it frequently or not, your health insurance protects you from excessive medical bills and potential bankruptcy in an emergency.

Preventative Care

All health plans include free preventative care services, such as annual check-ups, immunizations, and cancer screenings. These services can help to maintain your health and catch any potential issues early on, which is especially important for young people who may not regularly visit the doctor.

Peace of Mind

Insurance provides peace of mind and protection against unforeseen financial risks. While no one likes to think about untimely death or accidents, having insurance can give you and your loved ones reassurance that financial support will be available if needed.

In summary, while it may be tempting to forego insurance to save money, the potential financial risks of not being insured are significant. By enrolling in an insurance plan, young people can gain financial protection and peace of mind, knowing that they and their loved ones are covered in the event of an untimely death or other unexpected events.

Frequently asked questions