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The first time you shop for health insurance can feel overwhelming. Learning new terms like “premium” or “copay” can be challenging. And reading about different types of plans, from job-based insurance to marketplace plans, can take a lot of time and energy.
Then there’s the cost of insurance. Choosing how much to spend on your health coverage every month is a big decision. But finding the right plan can help protect your health and your finances.
Whether you need to find a plan of your own, join a parent’s plan, or rejoin a parent’s plan, understanding how health insurance works and exploring your plan options takes time. This guide will help you learn why you need health insurance, the different types of insurance available, and how to find the right plan for you.
Why do young adults need health insurance?
Life is unpredictable. You never know when you might need care — or for how long. Health insurance helps make sure you’re covered for the care you need, whenever you need it. And in some places, you’re legally required to have it.
Preventive care
Taking care of your health starts with preventive care — things like checkups, screenings, and vaccines. Like the name suggests, preventive care helps prevent certain health issues and catches others before they become serious. If you have coverage, your doctor may be able to catch early signs of a serious health issue. Then, they can create a treatment plan to get your health back on track. With the right preventive care, you’re less likely to develop chronic health issues that can cost more to treat.
Chronic care
Health issues that affect you for a long time, like diabetes or asthma, are considered chronic. Managing these issues can require regular doctor’s appointments, tests, and medications. Without the right coverage, getting the care you need could become too expensive to afford. The longer you go without care, the worse a chronic condition can become. Insurance doesn’t help you manage your condition, but it helps make the care you need more affordable.
Emergency care
Accidents happen. When they do, you may need medical care right away. If you’ve been in a car accident or broken a bone, for example, you might visit an urgent care facility or the emergency room. Those visits could cost you thousands in medical bills, but having the right coverage can help you pay less.
What are health insurance options for young adults?
You have many ways to get health care coverage, from adding yourself to a parent’s plan to getting coverage through school, your employer, or the health insurance marketplace.
Parent’s health insurance
Your most affordable option might be getting health coverage through a parent. You can be covered under a parent’s health insurance until you’re 26. Their plan will need to cover dependents, which is just a term that means family members who also get help paying for health coverage.
After you turn 26, you’ll need to find your own plan. Your coverage through your parent’s plan will usually end during or soon after the month you turn 26. If your parent gets insurance through the health insurance marketplace, you can stay covered through December 31 of the year you turn 26.
Student health insurance
If you need to spend more time on research papers and less time researching insurance, think about a student health plan. They can be an easy and affordable way to get health coverage. Many universities have plans that cover essential health services like doctor visits, emergency visits, mental health care, prescriptions, labs, and more.
Job-based health insurance
You need to be healthy to work, right? That’s why many employers offer health coverage. Employers may offer different types of plans, so be sure to ask your employer about the health insurance they offer. And if you need help choosing a plan, reach out to your human resource department. Whether you’re leaving a parent’s plan or getting a plan for the first time, they can help you enroll.
Marketplace plan
If the plans offered by your school or job don’t meet your needs, check out the government’s health benefit exchange, also known as a marketplace. The marketplace is a service run by the federal government that helps people compare their coverage options and costs online. To review different plans and choose the best one for you, you can visit healthcare.gov. And don’t be afraid to pick up the phone. You can call them with any questions you might have.
Medicaid
Depending on your income or certain life circumstances, you might qualify for free or low-cost coverage through Medicaid. You’ll need to review your state’s Medicaid qualifications to find out if you’re eligible.
How do you choose the right plan?
Choosing the right plan is different for everyone. The best health plan for you is the one that’s best for your budget, care needs, and total health.
Create your health care budget
Setting a health care budget is one of the most important steps to take before choosing your health insurance. You’ll need to know things like your monthly income and monthly expenses. Once you have an idea of how much you can afford to spend on coverage, think about how much care you might need.
Consider your care needs
If you don’t think you’ll need much care beyond essentials like checkups and prescriptions, you could choose a less expensive plan. If you need more care — maybe you want to go to therapy or need help managing a chronic health issue — you might want to pay more for a plan with more coverage. You may also want to pay for more care if you play sports or do activities where you have a higher chance of getting injured. You’ll pay more up front, but you’ll have fewer out-of-pocket costs when you get care.
Read the health insurance plan documents
Health insurance can be confusing at first. But when you understand the main health plan documents, things get a little easier. Documents like the Evidence of Coverage and the Summary of Benefits and Coverage can explain what services a health insurance plan covers and how billing works.
Tip: You’ll usually pay less for care when you stay in your plan’s network. You might consider finding a health provider that combines care and coverage, which means your doctors and insurance are part of the same team. When you have combined care and coverage, your care will usually be in-network. Learn the difference between in-network and out-of-network care.
Look for wellness perks
Your health insurance should cover essentials like routine checkups, emergency room visits, and prescriptions. But some plans do more to support your everyday well-being. Look for plans that have wellness perks like gym memberships, mental health apps, and more. These perks can be great for your mind and body while saving you money.
No matter how young and healthy you are, getting health insurance is a great investment that can help you stay healthy and protect your finances when you’re not. And remember that some coverage is better than none. If you can only afford the least expensive health insurance, go with that. Don’t worry about getting locked into a plan. You can change your plan every year and find a new one that better suits your life.