1. Staying on a Parent's Plan:
* Eligibility: The Affordable Care Act (ACA) allows young adults to remain on their parents' health insurance plans until age 26, regardless of their student status or marital status. This is the most common and often most affordable option for recent grads. However, this is dependent on the parent's plan and their willingness to keep the graduate on it.
2. Employer-Sponsored Insurance:
* Eligibility: If the graduate secures a job with an employer who offers health insurance benefits, this is often a good option. Employer-sponsored plans can be quite comprehensive, but the premiums and out-of-pocket costs will depend on the employer's plan and the employee's contribution.
3. Marketplace Plans (ACA):
* Eligibility: The ACA marketplaces (healthcare.gov and state-based marketplaces) offer subsidized and unsubsidized plans to individuals and families. Eligibility for subsidies (tax credits) is based on income. Recent grads may qualify for subsidies depending on their income level. These plans vary widely in cost and coverage.
4. COBRA:
* Eligibility: COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you to continue coverage under your parent's employer-sponsored plan or your own (if you had it during college) for a limited time after you lose your job or graduate. It's generally expensive, as you pay the full premium, but it's an option if you can't find affordable coverage elsewhere.
5. Medicaid and CHIP:
* Eligibility: Medicaid and the Children's Health Insurance Program (CHIP) offer low-cost or no-cost health coverage to eligible individuals and families. Eligibility is based on income and household size. Recent graduates might qualify depending on their income.
6. Short-Term Health Insurance:
* Eligibility: Short-term health insurance plans provide temporary coverage. These are typically cheaper than ACA plans but offer much more limited coverage, often with high deductibles and out-of-pocket maximums. They are generally not recommended for long-term coverage.
7. Catastrophic Plans (ACA):
* Eligibility: These ACA plans have very high deductibles but low premiums. They're best suited for young, healthy individuals who only need coverage for major medical events. Subsidies may not significantly reduce costs as the deductible is so high.
Choosing the Right Option:
The best option depends on individual circumstances, including:
* Income: This affects eligibility for subsidies through the ACA and Medicaid/CHIP.
* Health status: If you have pre-existing conditions, an ACA plan might be preferable.
* Job situation: Employer-sponsored insurance is often a desirable option if offered.
* Financial resources: Consider the premiums, deductibles, co-pays, and out-of-pocket maximums.
It's recommended that recent graduates explore all available options and compare plans based on their individual needs and budget. Using a marketplace tool or consulting with an insurance broker can be helpful in navigating this process.