By Marc Derendinger

In June, our company’s health plan mailed me a letter concerning my daughter, threatening to terminate her medical coverage September 1st, 2004, if I did not supply certification of her continued student status. Summer is the time when many students lose their health insurance eligibility, due to age, reduced course work, or graduation. 

When does health coverage end for your dependent child? 

· Upon marriage
· Upon losing dependent status under IRS rules
· Usually upon turning Age 19, (unless full-time student)
· Anytime course work drops below 12 units, (Age 19 through 23)
· Upon turning Age 24 (Age 23 for some plans), regardless of student status

As you know, your former dependent may continue coverage under COBRA, at the current group rates, plus 2%. For many parents, these rates seem expensive:

Typical area COBRA rates effective July 1, 2004

Kaiser- $321.18 monthly
HealthNet- $504.62 monthly
Blue Shield PPO- $207.94 monthly

However, if your child has on-going medical treatment or pre-existing medical conditions, continuing under COBRA is probably a smart move. But if his or her health is excellent, you may save hundreds of dollars annually (and a lot of time) by applying on-line to one of Blue Shield or Kaiser’s individual plans.

This spring, Blue Shield and Kaiser rolled out their new on-line application capabilities, which simplify and speed up the application process. For example, if the application is “clean,” approval can be as few as two to five days, compared to three or four weeks with the old paper system. You also save time and confusion, bypassing the old method of mailing the enrollment packet to your student, and “waiting” for its return.

Rates for the San Jose - Milpitas area start at just $41.00 monthly for Blue Shield, and $79.00 for Kaiser (possibly less in other areas). To obtain a quick quote for your son or daughter (or perhaps yourself), just click here. Protect your assets today, by making sure your children carry medical insurance!


Editor’s Note: Marc Derendinger is the Insurance Broker for the City of Campbell and many other companies in the San Jose area. He can be reached at (408) 252-7300 or by email at marc@derendinger.com 

Know someone who can benefit from our newsletter?