1. Policy
A New Provision Emerges, An Old System
Holds
- Allison Goldstein
Recent reform in health care legislation means a different approach to coveted post-graduate health insurance
for many students. While some feel confident that they will find a solution to coverage, others fight the battle
between high unemployment rates and medical coverage that might break the bank.
Steven Louis-Prescott, 23, graduated last May from the University of Michigan with intentions of a gap-year
before law school. Louis-Prescott, a Michigan native and current employee at Brother Rice High School in
Bloomfield Township, Mich., decided to buy a low priced 12-month plan for $40 per month.
“I was worried about needing severe medical assistance and being financially burdened” Louis-Prescott said.
He decided to buy this plan, with several coverage restrictions, and continue under the policy through law
school at the University of Colorado beginning in August.
Steven Louis Prescott, 23 talks about his health insurance qualms, and what lies ahead for his coverage.
This individual policy’s drawbacks, however, may be more significant than Louis-Prescott hoped. “I pay huge
co-pays every time I go to the doctor. It costs me something like $175 for a simple visit, but I’m mostly
covered if anything major happens to me.” The policy allows Louis-Prescott to save money on premiums by

2. taking large deductibles, therefore it covers most major expenses, but leaves out others. As long as he stays on
this plan, Louis-Prescott hopes he will not need mental health care, drug and alcohol abuse treatment, physical
therapy, or preventative treatment beyond a quota, including x-rays and medical tests in excess of a specific
amount per year.
Louis-Prescott’s concerns, however, are appeased by the new provisions in the health care reform bill signed
on March 23. “With the new health care plan, I believe I’ll be able to stay on my parent’s policy until I’m 26,
which is when hopefully I’ll be pursuing employment with a law firm that supplies medical insurance,” said
Louis-Prescott. “It’ll allow me to hop back on my parent’s plan for another three years.” His medical security,
however, may not be guaranteed.
Within the next six months, beginning with the passage of the health care bill, dependent children will be able
to stay on their parent’s plans, but this may not mean what many young adults are hoping. Louis-Prescott is
one of many recent graduates unsure about whether or not these new dependent provisions will include him.
David Sherman, 22, accepted a position at a Web start up in New York with the promise of temporary job
security, but without the guarantee of coveted health insurance. He, too, is unsure about the affect these new
provisions will have on his plight. “According to the bill’s provisions, coverage is extended to people who are
dependents and are not offered their own health insurance from employers, but, to be honest, I don’t know
exactly what that means,” Sherman said.
The details of exactly what it means to be a dependent have not yet been released. Each state has its own
definition of dependency ranging from only unmarried, to financial dependence on parents in excess of 60
percent. This federal law will create its own definition that can include any, or none, of these variables—a
definition that will be released within the next six months, before the new provision becomes active.
Then what are the options for young adults if health care reform does not guarantee coverage after graduation?
Sherman is set to graduate from the University of Michigan with a BA in English. he will no longer be covered
by his parent’s health care plan come May 1.
According to the Kaiser Family Foundation, 13.2 million young adults are uninsured, but concern varies
amongst the demographic. Sherman does not want to become one of these uninsured young adults, and is
committed to finding health insurance at a low price. “I’m almost willing to risk it,” Sherman said, “but if
something does happen, it’s just illogical. I won’t be able to pay that off.”

3. Sherman is originally from Louisville, Kentucky, and his insurance plan will no longer qualify him as a
dependent upon graduation. Kentucky’s state law defines a dependent as an unmarried, full-time student, and
Sherman is one of many residents who face this problem.
After asking his parents for help, Sherman turned to the COBRA method first. He researched what it would
take for him to stay on his parent’s policy for an extra price.
“The COBRA approach sounds appealing at first. Students feel comfortable staying on their parent’s policy,”
said Karen Klever, manager at the University of Michigan Health Services Student Insurance Office. “But, in
order to keep that extra person on the policy, employers are allowed to charge 102 percent of what the single
rate usually is.’ State and group rates vary, and can be up to $1000 per month in some cases.
Sherman also shopped around for a low cost policy. “It’s extremely difficult for me to figure out which
policies are going to be the best for me,” Sherman said. “I’ve been talking to Aetna Student Health a lot, but
there are just so many different options, and I want to be sure that none of these plans will drop me if I
suddenly get into some sort of accident.”
His fears may stem from truth, according to Klever. “Some of these temporary plans will terminate your
service at the beginning of a month if they think you are too expensive for them to keep on. We generally try to
steer students toward quality plans with more reliability,” she said.
Sherman’s quest for a reliable plan continues, but he says he is going to keep hoping that the federal
government’s version of a dependent includes him. The new provision seeks to decrease the number of
uninsured young adults, by applying options for affordable health insurance, but these effects remain to be
seen. Until the true terms have been defined, opting out of health insurance altogether may maintain its place
as the attractive option for many young adults.
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4. The new health care provisions are largely misunderstood according to the Kaiser Family Foundation