Health Reform Will Help the Young - Sooner and Later

Graduation season is upon us, and for those donning caps and gowns, that's not necessarily a good thing: Though they stand to fare better employment-wise than the class of 2009, the New York Times reports: "Average starting salaries are down, and employers plan to make only 5 percent more job offers to new graduates this spring compared to last spring, when job offers were down 20 percent from 2008 levels, according to a study by the National Association of Colleges and Employers, which tracks recruitment data."

Without jobs, many young people would have faced the looming possibility that they'd be without health insurance for the first time. Before health care reform was passed earlier this year, most insurance booted dependent children from their parents' coverage plans once they finished college. But the affordable care act's provision allowing young adults to remain covered through their parents' plans through the age of 25 is perhaps one of the most reassuring, common-sense safety nets created by the landmark legislation. Sara R. Collins, in a report on the health reform expansion for the Commonwealth Fund, called it "a graduation gift to young adults."

Estimates put the number of young people who would have otherwise been kicked off their parents' insurance plans before or upon graduation at about 1.2 million.

Young people who find themselves suddenly without health coverage and become sick or injured are more likely to try and wait out their afflictions, a potentially devastating strategy if a serious condition goes untreated or is allowed to spread.

Though the provision is scheduled to go into effect in late September, some insurance companies are honoring it ahead of schedule. WellPoint (which also operates Blue Cross Blue Shield), and UnitedHealth Group have both announced that they plan to offer coverage to college grads earlier under some plans - with some coverage extensions beginning June 1. For WellPoint, that might help redeem some favor with the public after their disastrous announcement that they would be instituting steep rate hikes to some California customers - an attempt so unfavorable that it was investigated by the federal government and eventually scrapped.

Other provisions in the health reform bill will also allow young people to eventually gain coverage. "About 7.1 million, more than half the total, will be eligible for Medicaid beginning in 2014 because their income is less than 133 percent of the federal poverty level, or about $14,404 for a single person and $29,327 for a family of four. And up to 5.6 million uninsured young people will qualify for government subsidies if they buy private coverage through the insurance exchanges; the subsidies will be available to anyone earning up to 400 percent of the poverty level, or $43,320 for a single person," reports the Times.

It's certainly heartening news for graduates that while they might not walk across that stage with a job offer already secured, they'll at least be able to continue their hunt without having to stress about being able to afford health treatments.

Photo credit: Chad Miller