Example #3 – Dave
- Age – 26
Location – Southwest Wisconsin
Type of Plan Needed – Individual Health Plan
Looking for – The cheapest possible coverage
Health Status – Excellent health
What should Dave do?
Because Dave is 26, the typical age cutoff for Dependent Health Coverage, he can no longer be covered under his parents’ health insurance and must find his own health insurance coverage. According to the Affordable Care Act, he may be liable to pay a fee if he doesn’t get insurance within 60 days of becoming uninsured.
Fortunately, because Dave is younger than 30, he’s eligible to buy a catastrophic plan, which may be a good and cheap health insurance alternative for him. The premiums for a catastrophic plan usually rank amongst the cheapest of all plans. However, catastrophic plans generally require you to pay all of your medical costs up to a certain amount, usually several thousand dollars. One benefit of a catastrophic plan is that it covers Dave’s first three doctor visits of the year without Dave paying anything out of pocket.
As soon as Dave turns 30, he will have to find another type of insurance plan that meets his needs, unless he is eligible for a hardship exemption that may allow him to keep his catastrophic coverage.