 This presentation has been prepared by a grantee of the Foundation for Financial Planning for the purpose of educating student pro bono financial planners who will be working with their peers and community members. This presentation is for educational purposes only. All information provided in this presentation will be general in nature and may not be applicable to individual cases.

 What is health insurance?  Why is health insurance important?  How can I obtain coverage?

 Insurance that protects the insured for expenses or loss incurred for medical reasons, as through illness or hospitalization

 Purchasing health insurance protects against loss that can destroy you financially  Less stress during tough times because you know you're covered  Individuals without health insurance may not get the medical care they need

There are three main ways to get health insurance coverage:  Insurance provided by your parents or guardians  College-sponsored insurance  Individual health insurance plan

 Health insurance coverage from your parents is generally provided through their employer-sponsored health insurance plan  Plans usually offered are ◦ Major Medical Insurance ◦ Health Savings Accounts ◦ Supplemental Health Insurance

Cons:Pros:  New laws allow students to stay on parents plan until age 26.  Plans generally cannot exclude a student for pre- existing condition(s).  Usually has the richest benefits (i.e., dental, vision, lower deductibles and copays, some even give discounts to health clubs) Going to school out of the region puts you at risk of being out of network. This means: ◦ Higher deductibles ◦ Higher copays ◦ Some ancillary services

 An alternative plan type is a college-sponsored insurance plan  These are offered by over half of college and universities nationwide  Plans works just like any other purchased plan  Gaining popularity and being used as a viable alternative to parent-sponsored plans and individual plans

Cons:Pros:  Usually offer lower and more affordable rates  Offer a variety of payment plans to choose from  Have well-rounded network of doctors and hospitals to choose from  Great discounts for preventive services (immunizations, flu & cold treatments)  Plans have huge gaps in coverage that exclude some major medical issues  Some plans have ceiling limits for certain conditions  Some pre-existing conditions will not be covered

 Insurance plan that you can purchase from a health insurance agent  It typically has a cheaper premium than a group plan or college-sponsored insurance plan  The premiums are solely based on the individual who purchased the plan  Individuals under 18 years of age cannot be denied for coverage

Cons:Pros:  Premiums are typically lower  Quick and easy access to coverage  Plan can be customized to meet your individual needs  Individual health insurance does not offer many of the benefits that group plans offer ◦ Pregnancy ◦ Ancillary services  More deductibles for services such as: ◦ Laboratory work ◦ Rx

 Blue Cross Blue Shield. (n.d.) Why is health insurance important? Retrieved from: mportant.html mportant.html  Jon Valdivia, M.S., pro bono graduate assistant