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Do You Need to Buy Separate Health Insurance for College Students?

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health insurance for college students
In many cases, health insurance is less than affordable, making it difficult for individuals to decide whether or not coverage is worth the cost. It isn’t something to be overlooked, especially for students. More than 20 million students are expected to return to college this fall and, without fail, colds and the flu will begin spreading. You don’t want yourself or your child to fall behind because they didn’t have the health care they needed while away at school but do you really need separate health insurance for college students?

Health Insurance Options for College Students

According to HealthCare.gov, each of the options below is available for college students.

  • Your parent’s insurance: Children are permitted to remain on their parent’s insurance until they are 26 years old.
  • Student health plans: Many colleges and universities offer a student health plan. In many cases, this is much cheaper than purchasing your own health insurance and gives you the basic coverage you need.
  • Individual health insurance: You can enroll in your own health insurance program that covers the essentials. Catastrophic health plans are available for individuals under 30. Catastrophic plans cover severe illness or injury and can be more affordable than full health insurance coverage.
  • Medicaid or Children’s Health Insurance Program: If you apply for individual coverage, you may discover you are eligible for Medicaid or CHIP. If you qualify for one of these government-funded programs, you can begin coverage immediately.

Each of the options above is available to all college students but it may be wise to compare the cost of each side-by-side. You may find that remaining on the family’s health plan may prove to be cheaper than a student health plan or individual coverage.

Do You Need Health Insurance?

You may be able to save the money you planned to spend on insurance altogether. You’ll need to take note of a few things before you decide to do so though.

This year, the health insurance mandate will subject individuals without insurance to a $695 tax penalty per adult and up to $2,085 per family. While the new tax law signed by President Trump removed the mandate, it is not in effect until 2019. So, anyone without health insurance in 2018 will still be required to pay these fees.

However, many students won’t be subjected to the fines at all because most won’t be making enough money to file income taxes ($10,000 a year or less). So, you probably don’t need health insurance for college students to avoid a fine but the decision to go uninsured should not be taken lightly.

Generally, it is a good idea to hold health insurance at all times. This helps ensure you will have the means to pay for a doctor visit, ER visit, or other medical procedure, whether money is tight or not.

Health Insurance Tips for College Students

If you do decide to purchase health insurance for yourself or your child, there are two things to keep in mind if they are traveling to school.

  1. Know where to go (within your network): Once you get settled in into your dorm, find out what local offices accept your insurance. It is a good idea to get the name and number of an eye doctor, dentist, and general practitioner in the area. Then, make a well visit with them and get your insurance on file.
  2. Pick a local pharmacy that accepts your insurance: Once you find a doctor that will accept your insurance plan, you’ll need to find a pharmacy that works with your coverage as well. Most of the time, your doctor’s office can point you in the right direction. You can also call the number on the back of your insurance card for more information.

If you’ve been considering buying a new health insurance plan for your college student (or yourself), consider all of your options and the cost of each. Then make an educated decision based on what is best for your health and finances.

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Insurance By Profession: What’s the Difference?

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Most people don’t like to think about their insurance plan. For one, insurance programs are often littered with legal, medical, and/or financial jargon, and sifting through different packages is no one’s idea of a good time. In addition, it’s often unpleasant to consider the need for insurance in the first place. After all, people only tend to focus on their insurance package after something bad has happened. Fortunately, taking time out now to study your insurance options could end up helping you out massively later on. Here then are a few things to note about insurance and how your choice of profession affects it.

High-Risk vs Low-Risk Occupations

The system isn’t “fair” in regard to insurance payments currently. It’s a reasonable question to ask why two people have to pay different rates on their insurance; and it can be frustrating to end up paying more because of a factor outside of your control. Indeed, insurance companies will take nearly everything about you into account before agreeing to a policy with you. Everything from your age, gender, marital status, driving record, and, yes, choice of occupation will have an impact on how much insurance will end up costing you. For reference, the DMV lists doctors, lawyers, and architects within a “high-risk” insurance bracket, and scientists, pilots, and teachers in the “low-risk” insurance group. Remember, companies that sell insurance consider every sale as gamble –– and they’ll lower or raise your rates to mitigate against potential losses.

Disability Insurance by Profession

It may sound odd to some that disability insurance is a bit of a gray area. Just what qualifies as “disabled” though has a lot to do with your line of work. For example, someone who operates intricate mechanical equipment can become disabled if they suffer an injury or pick up an ailment that prevents them from using their hands effectively (think arthritis). This is one reason why disability insurance varies so much by industry; doctor disability insurance differs from disability insurance for truckers, which differs from disability insurance for accountants, etc.

Finding the Right Insurance Package for You

Many people still sign up for group insurance programs through their employer, but it’s become a recent trend for some professionals to seek out individual plans. Note though, that looking to save money on an insurance plan isn’t always the wisest decision. If you do work in a high-risk industry, it may be worth your while to pay a higher premium in order to ensure comprehensive coverage. The bottom line is that picking out the right insurance program isn’t a decision to be taken lightly, and you should work to explore all your options before making a final call.

Here’s What You Need to Know About Back-to-School Insurance

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back-to-school insurance
The end of summer is almost here, which means many students will be headed back to school. Depending on the age of your child, you’ll need to research what your back-to-school insurance needs may be, whether it is auto, health, or home coverage. Since the best time to review your insurance plans is before the school year begins, here’s what you need to know.

Car Insurance for Students

Kids in high school may be preparing to take drivers ed and get their licenses this year. If that’s the case for your child, you may want to begin researching car insurance rates or what it may cost to add them to your insurance plan. Some insurance companies will offer a significant discount for ensuring your teenager if you agree to put a lowjack in your car to monitor speed.

You may also want to inquire about student discounts for car insurance as well. There are some companies that offer a discount for students with a high grade-point average.

Students headed off to college may also see a change in premiums and coverage if they go more than 100 miles away from home and bring a car to campus. However, you also stand to save up to 30% if your child leaves the car at home.

Health Insurance

Elementary school-aged children are especially susceptible to colds and cases of flu. Schools are a breeding ground for germs. Because of this, it is important to make sure you have solid health insurance coverage so you’re able to take them to the doctor when needed.

Many colleges require students living on campus are required to have health insurance. Thankfully, your children can remain on your insurance policy until they are 26 years old. If that isn’t an option financially, they can apply for individual health insurance. Students also have the option of receiving care from on-campus health care services. Some universities offer free health care while your child is enrolled full-time.

Home Insurance

College students often bring expensive electronics along with them to school. This can often make their dorm room or apartment prone to burglary. Most home insurance policies will cover these items as long as your child is staying in the dorms but will not cover certain items. Students living off-campus will need to purchase renter’s insurance, or you may consider adding their renter’s insurance to your policy.

Most home insurance policies cover up to 10% of property owned by an insured that is at a residence other than the residence listed on the policy. A $100,000 policy will cover $10,000 of belongings in a dorm.

When students return to school each year it is a reminder for many people to review their current insurance coverage. Taking a good look at your insurance may help you discover gaps in coverage and prevent any losses in the future.

Readers, are you preparing to make any changes to your insurance coverage now that students are headed back to school? 

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Is Short-Term Medical Insurance Worth It?

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short-term health insurance

In 2016, 28.1 million Americans were uninsured for the entire year. However, with recent changes to the healthcare mandate, that number may rise, particularly since premiums are largely going up.

The most popular plans available through the Affordable Care Act (ACA), also known as Obamacare, saw premiums soar by an average of 34 percent in 2018. In 2019, Californians can expect their cost to rise by almost 9 percent. In Washington State, insurers are proposing a 19 increase on average. The CareFirst of Maryland’s Blue Preferred offering may raise rates by a stunning 91.4 percent.

Now that Obamacare is changing, many people will begin to explore alternatives, one of them being short-term medical insurance. However, many wonder if short-term health insurance is worth the cost and if it provides enough coverage to be an effective option.

What is Short-Term Health Insurance

Short-term health insurance plans are products that typically come with a much lower cost in comparison to traditional options. For example, according to a report in late 2017, for a 55-year-old male in Indianapolis, the cheapest ACA plan was $563 a month. How much was a short-term health insurance plan? $103 each month.

However, they also come with a big caveat; the coverage typically only lasts for 90 days at a time.

It is important to note that the US Department of Health & Human Service is asking for the removal of the 90-day plan length limit. Ideally, they want coverage to last up to 364 days, just one day shy of a year. But, that isn’t the current state of the limitation, and there’s no guarantee the change will go through.

Further, some insurers allow people to buy up to four 90-day periods at a time. This means completing only one application and going through a single underwriting process. Then, the plans are valid sequentially, providing 360 days of coverage.

While you might be able to secure close to a year of insurance, it usually isn’t the kind of coverage you would be hoping to find. Mainly, this is because these plans don’t meet ACA standards.

Since they don’t meet ACA standards, they insurer can use higher deductibles, lower caps, and additional restrictions on a variety of medical treatments. This makes the monthly cost low, but that doesn’t mean you won’t pay big if you use the coverage.

Is Short-Term Medical Insurance Worth the Cost?

Even with a short-term medical insurance plan, a person could still be left with massive medical bills. Largely, these options don’t provide a substantial amount of coverage and have numerous limitations.

For example, the plan might not include prescription drug or maternity coverage or could charge extra to add these features. Excluding pre-existing conditions (which includes anything you’ve received treatment for or experienced symptoms of in the last five years before securing the plan) is also common.

Some insurers will even limit or deny treatments if a person discovers a severe condition, like cancer, within 30 days of the policy starting.

Additionally, a serious illness after the policy starts may lead the insurer to refuse to renew your plan later. This means, after the 90 days, you may not have any coverage options with them.

Traditionally, short-term health insurance also comes with deductibles that are higher than the maximums set in the ACA. That $103 a month plan mentioned above has a $5,000 deductible. This means you’d have to spend $5,000 in medical costs before the plan even kicks in.

After that $5,000, the plan only covers 50 percent of a person’s medical bills, in the majority of cases, until you spend an additional $5,000 in out of pocket expenses. Plus, there are still other limits and caps to contend with, like a $500 cap on ER visits.

ACA-compliant plans adhere to specific guidelines, including coverage for pre-existing conditions and more favorable out-of-pocket maximums. Plus, they can’t have as many exclusions as a short-term medical insurance plan, making your coverage more comprehensive.

Should You Try a Short-Term Health Insurance Plan?

Ultimately, your unique situation will determine whether a short-term medical plan is right for you. However, it is crucial that you read the fine print to learn about the coverage, exclusions, deductibles, and caveats before you make that decision.

Additionally, it’s important to note that not all states allow short-term plans. People in Massachusetts, New Jersey, New York, Rhode Island, and Vermont can’t purchase these forms of coverage at all. Specific states may also restrict each renewal period further, making them last less than three months.

In the vast majority of cases, short-term health insurance isn’t a cost-effective option. However, some plans are better than others. You may find one with lower deductibles, fewer restrictions, and favorable out-of-pocket limits. Typically, these will cost more than less comprehensive plans, but they can help avoid financial ruin at a much lower price tag.

When in doubt, consult with a state-licensed broker if your state-run exchange has them. These professionals can help you assess your options and determine which one fits your financial situation while respecting your personal healthcare needs.

However, if an ACA plan is available, even if the monthly cost is higher, you could be better off with the insurance. A single medical event can be catastrophic financially, and ACA-compliant plans provide substantially better protection.

Have you ever used short-term medical insurance? Tell us about your experience in the comments below.

Looking for more great insurance articles? Here are a few to get you started:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

The High Cost of Some Prescription Drugs Can Be More Than Most Automobiles

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<img src=" The High Cost of Some Prescription Drugs Can Be More Than Most Automobiles.jpg" alt”pillbottlelayingsidewayswithpillsfallingout">

According to Kelley Blue Book, the average price for a new light vehicle is $35,411. Even the lowest priced new cars will usually run over $12,000. While that number may not be a surprise. Due to the high cost of some prescription drugs;  many consumers are caught off guard when it’s time to pick up their prescriptions.

To make matters worse, some health insurance plans don’t help with the cost.

The High Cost of  Some Prescription Drugs

Tier one medications, typically name-brand drugs that manufacturers push through marketing campaigns, are often more expensive. In 2016, $5.6 billion was spent on prescription drug advertising, trying to convince consumers to ask their doctors about specific medications. These ads usually don’t discuss the cost of the drugs and selecting the wrong one could hit your wallet hard.

To help you make smarter decisions about your prescription medications, here are 11 that cost more than a car, according to GoodRX.

1. Actimmune

Actimmune is for the treatment of chronic granulomatous disease, a rare condition that impacts the immune system, and severe, malignant osteopetrosis .

Most patients need 12 vials a month, and Actimmune costs $4,360 per vial. That brings the monthly total to $52,321. If you use it for a year at that rate, your annual cost is a stunning $627,852. With various discounts and rebates and patient compliance, the cost can be lowered an average of $24,000 per month or $288,000 per year.

2. Daraprim

Both those with AIDS and transplant patient may use Daraprim, as well as those battling with toxoplasmosis. Typically, people use the medication for a few months.

A single one-month supply, consisting of 60 tablets, costs $45,000, or around $750 a pill.

3. Cinryze

A treatment for the rare, life-threatening condition hereditary angioedema, which causes swelling in various body parts, Cinryze costs around $44,140 for a typical one-month supply. Over the course of a year, that comes out to $529,680.

4. Chenodal

While a generic of Chenodal could technically be created, since the patent has expired, the “closed distribution system” has prevented generic manufacturers from producing the medication.

A typical 90 pill monthly supply of the gallstone dissolving drug usually runs about $473 per tablet or $42,570 in total. However, some patients need 210 tablets a month, and that runs $99,330.

5. Myalept

A medication for treating leptin deficiencies in those with generalized lipodystrophy, Myalept costs approximately $4,213 per vial. If you use the standard 10 vials a month, that’s $42,137.

Myalept is also the only medication available for treating the condition, so those who suffer it have no other options for finding cost savings.

6. H.P. Acthar

Also called Acthar, H.P. Acthar is an approved treatment for multiple conditions including multiple sclerosis, rheumatoid arthritis, Lupus, certain ophthalmic conditions, and more. One vial of the medication has a price tag of around $38,892.

7. Juxtapid

A 28 capsule supply runs about $36,992, or $1,321 per dose. The medication treats those with homozygous familial hypercholesterolemia, a genetic condition that can lead to heart disease.

8. Firazyr

Another treatment for hereditary angioedema, though using a different approach, Firazyr costs around $32,468 a month, or over $10,822 per syringe.

9. Harvoni

Harvoni treats Hepatitis C, a condition with notoriously high treatment costs, is widely advertised on television. It is the first combination drug, which needs to be taken once per day, in the treatment category, and a 12-week course of the medication is common.

28 tablets of Harvoni cost $31,500, or $1,125 per tablet. Over 12 weeks that brings the total to $94,500.

10. Cuprimine

Cuprimine is proof that even older medications can cost a bundle. It was invented in the 1970s, but still costs over $261 per tablet today. In fact, the high price tag is so controversial, that it debates in Congress have occurred and an episode of Dirty Money, a Netflix show, covered the topic.

A treatment for Wilson’s disease, those taking the drug usually go through three tablets per day, one after every meal. That brings the monthly cost up to $31,426.

11. Sovaldi

Another Hepatitis C treatment that usually requires a 12-week course is Sovaldi. At $1,000 per tablet, a month’s supply is around $28,000. For a full course of treatment, that comes out to $84,000.

Would Your Insurance Cover Some of the Cost?

Whether an insurance company will cover some of the costs of any prescription varies dramatically. If your doctor recommends any of the medications above, it’s wise to contact your insurer to discuss your coverage.

Additionally, asking your physician for information about alternatives can also result in cost savings, depending on your condition or the availability of generics.

In some cases, lower cost options may not be available, or your insurance might not provide coverage. In those cases, you need to discuss your situation with your doctor. They may be aware of programs that can help offset some of the expense, though that isn’t a guarantee.

Often, when a physician prescribes a medication, there is sound reasoning behind it. While shouldering these high costs could be scary, if your health is at risk, you may need to follow your doctor’s advice.

 

Have you ever been startled by the high cost of some prescription drugs? Tell us about your experience in the comments below.

 

Looking for more great articles? Here are a few to get you started:

 

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Insurance For The Underinsured, Ethos Insurance Review

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https://www.getethos.com/?ref=savingadvice

No other financial product provides the kind of security you get from life insurance. It helps beneficiaries during truly painful circumstances. Sadly, most adults either don’t have life insurance or have insufficient coverage for all of the things that arise in bereavement and its aftermath.

There is a new player in the life insurance arena. The name of the company is Ethos and their goal is to get you insured quickly, affordable and easy.

Is Ethos Reliable

Many people worry about the reliability of new insurance companies. The following industries have put their faith in this company:

  1. Munich RE
    Reinsurance Partner
    Reinsurer ranking: #1 globally
    In business: 137 years
  2. AON
    Business Partner
    Insurance broker: #1 globally
    In business: 35 years
  3. RGAx
    Business Partner
    Life insurance in force: $3 trillion
    In business: 44 years

With these type of industry partners, you should feel pretty safe giving Ethos an opportunity to cover you as well. The have very strong coverage. Check out who they’ve partnered with to ensure you will always be covered.

Strong Coverage

Ethos also derives strength from a partnership with Assurity, a leader in the life insurance space. Assurity has been in business for over 100 years.

Underinsured? Ethos Life Insurance to the rescue.The partnership enables Ethos to cover a wider range of applicants.

Ultimately, getting a policy through Ethos is simple. You can get covered in as little as 10 minutes, giving you the ability to secure your loved ones’ finances.

Plus, there is never any commitment to buy simply because you request a quote. Ultimately, it gives you the power to find the right policy for you, whatever that may be.

If you have anyone depending on you financially, you owe it to them to not be underinsured. Ethos can help. Find out more about how you can close this gap by clicking here.

Underinsured? Ethos Can Help.

Ethos has been breaking down the barriers that made it hard for families to secure life insurance, especially the tedium of the application process. It used to take weeks before an applicant could find out if they qualify for coverage in the first place.

“Applying for life insurance is a cumbersome experience,” said Richard Hu, vice president of partnerships at Ethos. “Weeks of back and forth with an agent, doctor’s appointments, and paperwork are the norm.”

Ethos uses modern technology and an intuitive user interface to drastically reduce the time to apply for coverage: as little as 10 minutes.

Substantial Coverage at Lower Prices

Ethos provides term life insurance, which is ideal for people who want substantial coverage at low costs, according to Investopedia; these policies tend to have lower premiums and more generous coverage amounts than other types of life insurance.

You can get a $25,000 policy for as little as $6 per month through Ethos. For those who require more coverage, policies are available up to $10 million.

The typical Ethos customer is in their 30s or 40s. Usually, this is the time when people are raising children and paying a mortgage, so having sufficient coverage is a must.

However, even people in their 50s can benefit from term life insurance. As Hu points out, “If they are taking care of an elderly parent, then they may need some life insurance to provide some security for them.”

Additionally, life insurance can be used to pay for final expenses, such as funeral costs. This allows the customer to ensure that there is no burden on surviving family members.

Matching Customers to Policies

When a potential customer contacts Ethos for a quote, the price is often a big concern.

“Most people are price sensitive. Their budget helps determine their policy amount,” said Hu.

Ethos gathers basic information, such as age and gender, and then recommends three different policies at various price points.

Name Your Price

“You can also name your own price,” he added. If a customer chooses that option, a policy is created based on those requirements.

So, how much life insurance should you opt for? Hu said that you don’t necessarily need to buy as much as salespeople used to suggest, which was seven to 10 times a person’s salary.

It can certainly be less than that, since the customer’s budget and life circumstances are more important considerations.

For example, individuals over 50 without children and who have a paid off their mortgage might not need much life insurance at all.Underinsured? Ethos Life Insurance can help.

Instead, they may only need to cover final expenses and any other costs they don’t want to offload onto their families after their passing.

Families First

A driving principle at Ethos: Customers’ families comes first. That’s why the company goes out of its way to make its insurance accessible, easy to understand and honest.

Ethos prides itself on providing top-notch customer service — made possible by different management strategy than what other insurers use.

Like Hu explains, “Our staff isn’t paid by how many policies they sell or how much the policy is worth. Once the incentive is removed, you free the employee to offer great advice that can really help the client.”

“They can focus on making the customer happy and ensuring they don’t feel like they are being taken advantage of.  The customer success agent is empowered to help families find the right policy for them, no matter what that may be,” he said.

 

Readers, do you have any life insurance, would you consider Ethos? Let us know in the comments below

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Looking for more great articles about insurance? You might like these:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.