The millennial’s guide to buying health insurance | Oscar Rx | hioscar Blog | Oscar
The millennial’s guide to buying health insurance
Adulting means getting a job, paying taxes – and getting insured. We’re here to help you figure out health insurance.
Picking a Plan Oscar Health Insurance
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There’s one inevitable life-truth they don’t teach you in college: Adulting is really effin’ hard. Once you’re out of school, there’s a lengthy checklist of things you have to do to kill it in the adult world. Get a job. Find an apartment. Chip away at that student loan debt. Remember to pay those bills, bills, bills (opens in new tab). Keep your chin up and your head on your shoulders. And, the one that’s probably the most annoying: Buy your own health insurance plan.
We get it. If you’re young and healthy, what’s the point of throwing away hard-earned cash on health insurance? Truth be told, if you don’t buy a health plan, you could still get hit with thousands of dollars in medical bills if an unanticipated health issue occurs.
It’s important to know your options and check off this major to-do. But don’t worry – we’re here to help. Here’s how to get health insurance as an adult.
The four phases of health insurance adulting
In health insurance terms, age isn’t just a number. It determines exactly the kind of health plan you’re eligible for, which can save you money. Here are some important health insurance milestones you need to be aware of:
You can make changes to your insurance during the Open Enrollment (opens in new tab) period, which happens every year from November until December 15th (or sometimes longer, depending on your state).
Need help figuring out where to start? Call us at 855-672-2794.
Your options for health insurance coverage
When it comes to obtaining health insurance coverage, you’ve got options. Depending on your current life sitch (employment, income, age), how you sign up for health coverage can save you cash in the long run. Here are your options:
Stay on your parent’s plan. We know you want your independence, but if you’re under 26, this is one of the cheapest options for you to remain covered. Family plans tend to have more extensive coverage than catastrophic plans (opens in new tab), which cover the cost of care in the event of an emergency. Even if you get married, you can stay on your parent's health insurance plan, but your spouse will have to find coverage elsewhere.
Use your student benefits. Full-time students may have the option of obtaining coverage through their university. If you’re currently in school, talk to your admissions office about how to get coverage. This may be particularly useful if you go to school out of state. Most health insurance plans only offer full coverage in the state where you live. If you regularly see a doctor, then it might be wise to get covered on your school’s plan.
Have your boss pick up the tab. Now that you’ve landed a sweet gig to pay the bills, check with your employer to see if they offer health benefits. Employer-sponsored health insurance is state regulated, which means companies with 50 or more employees must offer health benefits. Many companies chip in to pay part of your monthly premium costs, and some will even cover the full amount. Either way, you’ll still be responsible for paying your deductible (opens in new tab), copayments (opens in new tab) and coinsurance (opens in new tab), and other health care costs until you reach your out-of-pocket max (opens in new tab).
Buy your own plan through an insurance marketplace. Health insurance plans are available through Healthcare.gov (opens in new tab) or your state’s marketplace. Based on your financial information, these marketplaces will help determine if you’re eligible for government subsidies, which may significantly lower the cost of your monthly premium and other health care expenses.
Buy your own plan through a health insurance company or broker. If you’re not eligible for subsidies, you can purchase insurance directly through a health insurance company or a broker (aka licensed insurance agent). You won’t receive financial aid (subsidies (opens in new tab)) if you buy a plan directly from an insurance company or broker, even if you’re eligible through the Marketplace, so it’s important to do your homework before you buy.
Enroll in Medicaid. Based on your income, you may be eligible for Medicaid (opens in new tab) (state-subsidized insurance). If you’re eligible, you’ll get reduced rates for your monthly premium and other health care costs. You can usually enroll through your state’s marketplace, but sometimes, you’ll have to sign up directly with Medicaid.
Start shopping.
Now that you know your options, it’s time to start shopping for a plan. But before you do, you’ll want to collect some information.
First, find out the details of your current insurance plan, including the company, plan type, and covered doctors. If you’re happy with your current docs, you’ll want to find a new plan with similar coverage.
Next, obtain a record of your income from last year, and consider what you expect to make this year (opens in new tab). This information is essential when you’re applying for coverage on a marketplace, and will determine what kind of subsidies you’re eligible for. Your W4s or tax returns are a great place to find this information.
Finally, figure out your health care needs and current spending so you can pick the plan that will save you the most money. If you go to the doctor frequently, then you might want to select a plan with a higher premium and lower deductible. If you’re healthy and don’t see a doctor often, then a catastrophic plan might be your best bet if you're under 30.
Adulting can be overwhelming at first, but once you get into the swing of it, it’s a cinch.
