Most students don’t know the different types of health insurance options, or the difference between fee-for-service and HMO plans. Fee-for-service is the majority method of insurance coverage used by doctors in the United States, charging the patient/plan separately for each visit or test.
The health maintenance organizations (HMO) system only provides coverage if visit doctors within a pre-determined network. You have to front co-pay whenever you visit the doctor (normally a maximum of $15), but you may be able to arrange what is covered during an actual medical appointment; HMO’s usually cover about 70 percent of your visit costs, according to the US Department of Health and Human Services website.
If you’re having trouble securing a personal plan, you can opt for a temporary extension for your parents’ package. The Consolidated Omnibus Budget Reconciliation Act (COBRA) health system, passed by Congress in 1986, helps you if you need some time to gather health insurance after graduating. Dependents are covered under COBRA-regulated businesses for up to 36 months after losing eligibility, but there is usually a hefty monthly fee tacked onto your parents’ coverage. Remember, this is a temporary stopgap, not a permanent fixture. You should still be trying to acquire your own coverage during this period.
If you’re lucky, you can score a job out of school that offers health insurance with a periodical extraction from your paycheck. Michael Thompson, 27, from Manchester, Conn., received his health insurance through his reporting job after his dad’s coverage expired for him. He was then fired from his job, and lost his coverage. Thompson said he was fortunate that his family doctor offered him a discount when he had to make two uninsured visits.
Thompson’s efforts to find insurance weren’t as fruitful. He says he was rejected by several health insurance firms; he was taking many prescription drugs and had a metal plate bolted into his ankle to fix an injury, so the companies refused to cover him.
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