Insurance coverage for 19 year old?

[Wayne02]

My son seems destined for the military and has talked with various military people (current and retired) about his path. In addition he has been doing his research and such on the matter. At first I wasn't sure if he was serious but given his actions in the last 4 months he seems pretty focused. I think this would be a good choice for him and would be very proud.

However, there is a situation that has come up. He turned 19 the other day and is going to be dropped from our insurance. Cobra kicks in and the cost is $500 per month for a healthy 19 year old and he stays under existing coverage/plan. If I'm reading the paperwork correctly, apparently Cobra these days can go up to 36 months.

He doesn't have insurance coverage through his job, and jobs with benefits are a bit hard to find around here.

I'm wondering if it is reasonable for him to shop for private insurance that may cost less than $500? How would one go about this? Where to start?

Thanks

 

[Wayne02]

My son seems destined for the military and has talked with various military people (current and retired) about his path. In addition he has been doing his research and such on the matter. At first I wasn't sure if he was serious but given his actions in the last 4 months he seems pretty focused. I think this would be a good choice for him and would be very proud.

However, there is a situation that has come up. He turned 19 the other day and is going to be dropped from our insurance. Cobra kicks in and the cost is $500 per month for a healthy 19 year old and he stays under existing coverage/plan. If I'm reading the paperwork correctly, apparently Cobra these days can go up to 36 months.

He doesn't have insurance coverage through his job, and jobs with benefits are a bit hard to find around here.

I'm wondering if it is reasonable for him to shop for private insurance that may cost less than $500? How would one go about this? Where to start?

Thanks

 

[zercool]

Not sure how long he has to go before enlistment, but if he's a college student - I think even part time - he can still be covered on your insurance. Might be worth looking into and getting him enrolled in a class at the local community college or something. Tuition would be cheaper than 500/mo...

 

[klondike]

$500 is high for a 19yr old. I agree that if he is a college student that he may be covered under most policies until 21.
My son at 21 went on his own individual Blue Cross policy for $125/mo, good health as I presume your son does also.
Here is a lead in Vancouver,Stu Singleton, very good guy that used to broker our company and individual policies. http://www.manta.com/company/mm3z00m
If you do not live in the Vanc. area there are other brokers that can shop for you.

 

[scout]

http://www.ehealthinsurance.com/
This site will give you quotes for policies available in your area, and has an 800 number to call with questions. The prices are no cheaper than if you were to purchase the same policies from a local broker, however; so if you prefer to deal face-to-face you can comparison shop on this site and then take your preferences and/or questions to a local broker that deals with the insurer that offers the policy that most appeals to you.

 

[357larry]

I think things vary greatly from state to state. My family is covered by my policy with BCBS of Kansas through my employer. My kids, as long as they are in college full time, are covered until the age of 23.

 

[feralmerril]

19 years old and healthy enough for the military?
Sorry, I still am too much of a gambler!
I would just take my chances. I know that isnt going to be a popular answer!

 

[bk43]

Going naked(no insurance) or getting a major medical policy(covers only big stuff) are both viable options for a 19 YO short term.

Bob

 

[toroflow1]

Originally posted by feralmerril:
19 years old and healthy enough for the military?
Sorry, I still am too much of a gambler!
I would just take my chances. I know that isnt going to be a popular answer!

That's a popular answer with me Merrill!!

 

[CAJUNLAWYER]

Originally posted by bk43:
Going naked(no insurance) or getting a major medical policy(covers only big stuff) are both viable options for a 19 YO short term.

Bob

I normally don't agree with going naked (well in most cases

) but there is a valid point here-If he is not considered family, then God forbid-if something dramatic happens-the hospital can't turn him away for lack of insurance-I mean what's good for the illegals is good for us w---- folk

Just don't get snookered into signing a personal guarantee for him if they shove it under your nose. I speak from experience-My son is naked right now cause I can't aford to pay for health ins and I KNOW how to get him free medical care

Plus he is being sworn into the Coast Guard Monday!!!!!!!!
23 years old single and he gets to play with guns and Boaton Whalers AND get paid for it-pretty good gig. I'm proud of the boy, he wants to drive boats so he is going to go Coast Guard -may make it a carreer- and then get into the maritime indusrty. With the globalization going on right now, the shipping industry has got potential and I can't think of a better way to learn boats while serving the country than being in the Coasties.

 

[gregintenn]

I believe an inexpensive catastrophic care policy would be a more sound option than going without. Otherwise, a bout with cancer, or a sports injury, etc could screw his life and credit up for years.

 

[feralmerril]

Has he have a good job? Guessing not. Has he a exspendsive good paid for car? Guess not. What has he got to lose at that age? Probley not much. Sounds like he might be in the service within a year?
If I was to advise anything at that age, I would start putting into one of those plans that is like a ira, where its a medical fund that you draw off of as you get sick, I cant remember the name or initials of the plan but its a goverment backed or rather sort of a tax free deductable medical savings plan like those school savings plans for grandkids etc. It grows like a ira or 401K but only can be used for medical bills. AND what isnt used someday can be assighned to another relative as I understand. I heard it explained on a money talk radio show several times in the last year or so. At that age and good physical shape, I darn sure would rather be investing now $500 a month the price of the insurance, in the stock market that is close to if not the bottom, and have it rebound through the years untaxed!

 

[feralmerril]

Here is more on it. You do have to have a health insurance plan as I understand to qualify. The trick is to get a very high deductable one where the premiums are very small. Then just add to the program. Goggle MSA (medical saveings accounts) works like iras.
http://www.aarp.org/research/h...import-683-FS80.html

 

[zercool]

I'd seriously consider catastrophic coverage one way or another.

I'm 29, always been in pretty good health overall, until my bout with kidney stones last summer.

One stone ended up costing my insurance company around fifteen grand last time I counted it all up. Yeah. One ER visit, two surgeries w/ anesthesia, a couple X-rays, couple CAT scans, several ultrasounds, labs galore, half a dozen prescriptions, and a partridge in a pear tree.

A fifteen thousand dollar debt hanging over my head (because my parents raised me to pay my bills) would have made our wedding much harder, our honeymoon non-existent, and pretty much eliminated our current project of buying a house.

I certainly don't wish him ill - but if he's in an accident with an uninsured driver, he's on the hook. If he falls down the stairs and is laid up for six months ... he's on the hook.

Not pleasant... just my nickel.

 

[truckemup97]

If he shops around, he can get a major medical policy with a high deductible pretty cheap. I only pay $450 for my whole family for a $6000 deductible.

BTW, wouldn't he qualify for the now vastly improved

SCHIP program?

 

[ElToro]

i was between jobs for a while about 8 years ago and it was about 100$ a month for Kaiser. a bit more for blue shield. i cant imagine that a 19 year old with no pre-existing conditions cant get a policy with a super high deductible would be very much. i also had no intention of spending a week in hospital until my appendix went TU about 6 years ago. without insurance, surgery and stay it would have been $100k easily. hell we are still getting bills trickling in from my sons birth last May, about 60k so far, insurance is covering 99% of it that was c-section and 5 days.

i used to do car loans at a credit union. i did a small car loan for this kid and thought nothing of it. a few months later his mom calls and says kid turned 21 on a wednesday and that following weekend kid and buddies go to Pismo beach to ride the sand dunes on their motorbikes. well kid crashes with a truck on his bike and truck wins. hes in the hospital in Pismo and they are getting ready to amputate legs. insurance from the parents dropped on 21st birthday. 3 days later hes facing about $500,000 - $1mm in hospital bills. i told her to not worry about his car payments and take care of her son but that lesson really hit home when i was considering "going naked" and i had no wife or kid or mortgage at that point in my life. if something catastrophic happens you either have insurance or you might as well declare bankruptcy.

i dont mean to rant but the 40 something milion unisured the media loves to throw around is only like 10mm and most of those are by choice. mostly young people who feel invincible going naked. the reality is the hospital wont turn you away. people can afford a few hundred a month for cable tv and a cell phone but choose to not get a high deductable catastrophic coverage plan for minimal money

 

[H Richard]

Find a general line Insurance agent that you "trust". There are several companies that write the "in between" policies. When young people graduate from various schools but haven't gotten a job yet, or that have a waiting period before covered. They are usually very reasonable, and most are 80/20, with a stop loss and a 1 million cap.

 

[Jerry N.]

I'll second, third and fourth the get catastrophic insurance. I would also make sure you get it from a reputable insurance company. My wife an I look at some plans for my daughter that had very small life time maximums. What's the point of having catastrophic insurance if the payout is limited to a few hundred thousand. You need a million(s) if you have a catastrophic illness.

 

[Wayne02]

Originally posted by H Richard:
Find a general line Insurance agent that you "trust".

Finding someone like this would be good, but I'm not sure where he should start looking.

What is the main difference between using an agent and ordering off the internet from outfits like esurance and such. Cost a little more and the agent does all the leg work?

Some of the ones my son was looking at on esurance did not seem that expensive, but the choices were overwhelming.

My son asked me to look at the cobra paperwork as well and I'm now going through that. It says he has X number of days to decide if he wants to continue on the company insurance, and that he has to elect the coverage. What I'm not clear on is if this means he has NO coverage right now until he decides whether to go with the company insurance... but I'm still wading through the paperwork that came in the big cobra packet.

The decision to have insurance or not is of course up to him, but my strong preference is that he have at least some sort of catastrophic coverage. My thinking is likely biased from a hospital stay a couple of years ago that would have done severe financial damage had we had no insurance.