Young People in America Warned Over Health Insurance

September 11th, 2014
Young People in America Warned Over Health Insurance

Unlike the UK which has a health service paid for through taxation and national insurance contributions, the US health care system is run by insurance companies.

Young people in the US under the age of 26 who are embarking on employment are being advised that it is better to stay on their parents’ health insurance to ensure cover.

Many companies in the USA are no longer offering what is called fringe benefits to new employees. This includes health insurance cover.

If fringe benefits are offered, it is likely that the cost the employee has to pay from his or her salary is just too high to make it worthwhile.

It isn’t known why companies have rolled back the extra perks they used to offer, but it is believed one reason is young people are generally in good health. The companies are paying out out for cover which is unlikely to be accessed.

Critics, however, argue that this reasoning is dangerous. They point out that accidents can happen to people of all ages. If it happens, the individual(s) involved may have to pay thousands of dollars for treatment.

The warning is to make sure that young people don’t allow dependent cover to lapse on their parent’s policy.

Health insurance cover in the USA is also complicated, as everyone now legally must have some form of cover. Insurance companies can no longer deny cover to anyone, particularly those with pre-existing conditions.

However, while Obamacare is appearing to be working well, many companies are cutting back on offering their own health cover, which critics argue is causing extra problems.

Anyone aged under 26 can remain on their parent’s policy even if they no longer live with them or are married.

This again depends on whether the policy itself covers for dependents.

In short, the advice is – if you are under 26 in the USA, the best health insurance policy is the parents’.


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