Navigating your 20s often means making important decisions about school, family, and your career. But no matter which path you choose, one thing is certain: having a health insurance plan can help protect you on the road ahead.
Getting and keeping coverage is an important step in building your future. It helps you stay healthy and protects your bank account. In California, it is also the law. Depending on your situation, there are different ways to find a health plan. From getting coverage through your college or employer to choosing an affordable health plan with help from Covered California, here you will find health insurance options for people in their twenties.
Why Health Insurance Is Important
Health insurance is essential at any age. To start, it gives you peace of mind and helps protect your finances if you get sick, are injured, or have an accident.Fixing a broken leg can cost you $7,500 out of your own pocket.Keep reading to learn more about the benefits of staying insured andwhy health insurancemay be more important than you think.
Protect your health
Health insurance is an investment in a healthy future. All plans certified under the Affordable Care Act (ACA), also known as Obamacare, offer free preventive care. This includes annual checkups, vaccines, and medical screenings that can help detect serious health problems early, or even prevent them. Screenings for depression, counseling about sexually transmitted infections (STIs), birth control, and breast cancer screenings for women are covered at no cost to you.
Protect Your Finances
The risk of accidents or unexpected illnesses can put your finances at risk. Without insurance, a single visit to the emergency room can cost you $8,000 out of pocket, while a hospital stay can cost $43,000 or more. With health insurance, you have protection, because most of your costs should be covered, allowing you to recover without added stress. This financial security is not just about money; it is also about peace of mind. Knowing that you are protected allows you to live with confidence, without constantly worrying about the unknown.
Tax penalty for not having health insurance
Health insurance is not just a good idea. In California, it is the law. If you decide not to have it, you could face a tax penalty at the end of the year, unless you qualify for an exemption.
Health insurance for young adults
There are different ways to get health insurance as a young adult. You may be able to stay on your parents’ plan, get health insurance through your employer, or explore other options. Below are different ways to get coverage, so you can decide which option is best for you.
Health plans for students
If you are enrolled in a university, your school might offer you a student health insurance plan (sometimes called SHIP). These plans are usually affordable, and in most cases you can enroll before each academic term.
College plans vary from one institution to another, so it is important to review the plan carefully and make sure it meets your needs. For example, if you plan to attend a school near your home and keep seeing your family doctor, that doctor or clinic might not be in the plan’s network. In addition, some plans only offer covered services during the academic year, which means you would need to get short-term health insurance during summer break.
Stay on your parent’s plan
If you are under age 26, you may be able to stay on one of your parents’ health plans. Thanks to the ACA, this option is available whether or not you are in school, have a job that offers health insurance, get married, or have a child. However, this may not be the easiest option if you move far from home. Some plans do not cover routine medical care if you are out of state.
Employer-sponsored health coverage
For some people, getting a job also means getting health insurance.Seven out of every 10 peoplein the private-sector workforce have access to a health plan, so it is a good idea to check whether your job includes this benefit. With employer-sponsored coverage, you and your employer usually share the cost of the monthly premium for a health insurance plan.
Usually, employers cover most of the cost, but if the options they offer are too expensive, you may be able to find a more affordable plan through Covered California. The rule is that if the lowest-cost plan your employer offers costs more than a certain percentage of your household income, you can enroll in health insurance through Covered California. You may also be able to get financial help.
Coverage through Covered California
Covered California is a free, state-run service that helps millions of California residents get high-quality health insurance every year. Through Covered California, people of all ages — including young adults — can compare and choose a plan. We also help you get financial assistance to lower the cost of your plan. Ninety percent of people who enroll receive financial help. Let’s see how it works.
Financial help for health insurance
Four out of five people enrolled in Covered California receive financial help to lower the cost of their health insurance. The amount of financial help you receive is based on how much money you make. It only takes a few minutes to get a quick quote.
There are two different ways to get financial help. You can get financial help that lowers the amount of your monthly payment (called premium tax credits). You can also get help to cover the cost of any out-of-pocket expenses when you get care (called cost-sharing reductions). Learn more about this here.
Health insurance levels
There are four levels of coverage offered through Covered California, known as metal tiers: Bronze, Silver, Gold, and Platinum. All plans cover the same health benefits such as preventive care, emergency services, doctor visits, and prescription drugs.
Bronze and Silver plans have the lowest monthly cost. You will pay more when you get medical care, but if you do not have many ongoing health care needs, these plans may cost less over time. Gold and Platinum plans have higher monthly costs, but you pay less for health care services. You can find what works for you and your budget by using our Compare and Select a Plan tool.
Minimum Essential Coverage Plan
People under age 30 can also choose a different type of plan called a minimum coverage plan. Also known as catastrophic coverage, these insurance plans are designed to provide basic medical care. Minimum coverage plans purchased through Covered California cover three doctor or urgent care visits per year with no out-of-pocket costs and free preventive care benefits. All other services are offered at discounted rates until you meet the deductible. (A deductible is the amount you pay for health care services before your health insurance begins to cover them.)
Please note that financial help is not available for minimum coverage plans. Even if you do not qualify for financial help, you may want to consider a Bronze plan, which is the lowest metal level option. The monthly cost of a Bronze plan is usually about the same as that of a minimum coverage plan, but the deductible is much lower.
Medi-Cal
There is also Medi-Cal, California’s Medicaid program. This public health insurance program offers free or low-cost medical coverage for people in California who have limited income and resources. When you review health insurance plans through Covered California, you will be able to see whether you qualify for Medi-Cal. Learn more here.
When to Get a Health Plan
In general, the time to sign up for health insurance is during the open enrollment period. In most cases, there will be an open enrollment period no matter how you get your coverage — through school, an employer, your parents’ health plan, etc. Anyone who is eligible for coverage can get or change their plan during this period. For Covered California, the open enrollment period is from November 1 to January 31. If you do not enroll during this time, you may not have another chance to get coverage until the following year.
Please note that there are some exceptions. If you go through a major life change, you may qualify for a special enrollment period. What counts as a qualifying life event will depend on where you get your health insurance. Different employers and schools have different rules, so it is best to check. For Covered California, major life changes include turning 26 and losing your parents’ health insurance, losing a job and the employer-sponsored coverage that came with that job, getting married, moving, and more.
Do not wait to get health insurance
As you move into the next stage of your life, it is important to have health insurance to protect your physical and financial health. You may be able to get a plan through school, work, or one of your parents’ health plans. When you need another option, Covered California is here to help. It is easy to shop for plans, compare benefits, and get an estimate of monthly premiums and financial help. Have questions? Covered California’s live chat feature, CiCi, is ready to give you answers at any time. If you need more personalized help, certified enrollers are also available.
