Is Your College Grad As Protected As You Think?

College grads have a lot on their minds.Move back home or find an apartment?

Take a break or get a job? Health insurance isn’t even on the radar. Turns out, it’s not on their parents’ radar either.

That’s because many parents assume their insurance still covers their adult children. In reality, most college grads are booted off their parents’ policies as soon as they’re handed a diploma.

Just about 40% of parents mistakenly think that their health insurance extends to their older children (21-24) still living at home, according to a new study by College Parents of America and Assurant Health. And until these grads find a job with benefits, they’re at risk for racking up medical bills faster than student loan payments.

Costs Hit Unprepared Children And Parents Hard

"Going without health insurance is a mistake young people often make," says Jan Santoli of Medical Mutual of Ohio. "They don't think they'll get sick or become injured and what they don't realize is they're putting their health and finances at great risk."

With the rising costs of health care, unexpected medical expenses could quickly overwhelm a recent grad who’s just entered the workforce — and their parents who have already taken on part of the tuition bills.

Injuries from a climbing accident could create $450,000 in medical costs, projects Assurant Health. A case of pneumonia can come with a $75,000 price tag.

“Other studies show that about 40 percent of young adults are uninsured at some time during the year following their graduation,” said David Andrews of Assurant Health. “With college expenses so high, the last thing parents and their children need is to get hit with unexpected medical bills.”

The solution is surprisingly affordable, but not widely known.

Blind To The Options

While your grad is on the hunt for a job with benefits, you can fill the gap in coverage with a short-term insurance policy. Like the name suggests, these plans are temporary insurance, designed to cover a person from one to six months.

68% of parents don’t even know short-term health insurance is available. And many of those who do know about it think the coverage will cost over $100 a month. According to Assurant Health, temporary insurance can cost as little as $50 a month for a healthy young adult.

Short-term insurance isn’t just limited to medical coverage. Many plans let you choose dental and vision care, prescription coverage, emergency care, even life and critical illness insurance.

You can find short term coverage that starts in just a week. It’s a quick, affordable way to bridge the gap between a parent’s coverage and an employer’s.