When it’s time to start “adulting,” that may mean securing a full-time job to start paying your own bills. But it also means you are no longer allowed to be on your parents’ insurance and need to find your own. This process may be unfamiliar and daunting, which may be why some millennials avoid it altogether.
A reportOpens a new window found the millennial generation had the highest rate of uninsured individuals (16 percent) in the United States. Some of their reasons for going uninsured included not knowing how to enroll, not having time during open enrollment, the complexity of navigating health insurance and not feeling informed enough about their options.
But going without health insurance or choosing the plan that doesn’t meet your medical needs may lead to unexpected and expensive health care costs. For any insurance purchaser, understanding what the options are and how to choose them is important. Some of the more common choices are between a low-deductible, balanced or high-deductible plan.
Here’s how these options may be presented:
- Low Deductible: This plan may be a good option for you if you plan to use a lot of health care services or if you take several prescription medications. Your monthly premium will be more, but your deductible and out-of-pocket maximumOpens a new window will be less.
- Balanced: This plan may be a good option for you if you want to save a little bit on the monthly premiums while keeping out-of-pocket costs lower.
- High Deductible: This may be a good plan option for you if you don’t plan on needing a lot of health care services and have the means to pay your deductible upfront if an unexpected expense arises. You will pay less in premiums, but you will have a greater deductible and out-of-pocket costs.
Different benefits may be more important to you at certain stages of life. For example, if you are pregnant or planning to become pregnant, you may want to consider a low-deductible health plan because you will be at the doctor’s office more frequently. You will be paying for a more expensive plan, but you will have a lower out-of-pocket maximum, which may save you money in the long run.
Consider using this quiz to help guide you in the right direction: