Health insurance tips for young adults

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Get it while you're healthy. Experts say healthy young adults can buy insurance at reasonable rates — and they should.

It's tougher if you have a medical condition. Some insurance companies have denied coverage for something as simple as an allergy, says Sandy Praeger. She's past president of the National Association of Insurance Commissioners and is the current insurance commissioner for Kansas.

Signs posted on telephone poles aren't a good source for insurance, Praeger warns. Anything that says you must "Act now!" or promises health care at discounted rates should raise suspicions.

Other tips:

• Know your insurance status. Are you still covered under a parent's policy? When will that coverage end?
• If you're working and your employer offers a health plan, think twice before turning it down to save money. How would you pay the hospital bill if you had an accident?
• If you're not working or your employer doesn't offer health benefits, ask an insurance agent about month-to-month gap coverage or high-deductible policies that cover only very serious health costs but have lower monthly rates.
• Read the fine print. Better yet, ask an insurance agent to help you compare policies.
• Some insurers have plans designed for young adults with high deductibles and low monthly premiums.
• If you're laid off, find out about federal subsidies for COBRA premiums from your employer's benefits manager.
• Some states have their own COBRA laws that cover young adults who are nearing the age of being dropped from their parents' policies.
• More than 20 states allow you to stay on your parent's plan through your mid-20s. The laws don't apply to all types of employers though.
• If you are uninsured and have health problems, ask your state insurance commissioner's office about high-risk pools.

Source: National Association of Insurance Commissioners, WellPoint Inc., Aetna Inc.