National Survey Reveals Parents Need to Be Educated on Health Insurance Risks, Options for their College Grads
18 Abril 2006 - 10:00AM
PR Newswire (US)
Nearly 40 percent mistakenly believe that adult children living at
home are still covered under their health plans MILWAUKEE, April 18
/PRNewswire/ -- Graduation day is just around the corner, but it's
the parents of these young students who still need remedial
education on whether their health plans cover their children and
the options now available for short-term medical insurance.
Findings from a recent national survey of college parents revealed
that only 23 percent were highly confident that their adult
children would immediately find a job after college that provides
health insurance. Yet, fewer than one in three were aware that they
could buy short-term medical insurance for these young adults for
as little as $50 per month. The research was conducted by College
Parents of America and Assurant Health. It reaffirmed the results
of a previous Assurant Health survey that showed 40 percent of
parents mistakenly believed that adult children (ages 21 - 24)
living at home were covered under their health insurance plans. "We
hope this sends a wake-up call to the tens of thousands of parents
who do not realize they may be at great financial risk right after
their children graduate," said James A. Boyle, founder and
president of College Parents of America, the only national
membership association dedicated to advocating and serving on
behalf of current and future college parents. Some of the survey's
other findings included: -- 20 percent of parents have no idea when
their health insurance will no longer cover their college-age
children. -- Most believe that short-term health insurance for a
healthy young adult costs more than $100/month, when in fact such
policies can be obtained for as little as $50/month. -- 68 percent
of the parents were not even aware of the availability of
short-term health insurance, which typically offers coverage for
periods ranging from one to six months. "Other studies show that
about 40 percent of young adults are uninsured at some time during
the year following their graduation," said David Andrews, Vice
President, Product Management, Short Term Medical for Assurant
Health. "With college expenses so high, the last thing parents and
their children need is to get hit with unexpected medical bills."
According to Assurant Health data, a climbing accident could result
in more than $450,000 in medical expenses, while a case of
pneumonia can cost $75,000. One Assurant Health policyholder
suffered a spinal cord injury that cost $623,000 to treat, yet paid
only $266.40 for six months of short-term coverage. Assurant Health
offered the country's first Short Term Medical Plan in 1973 and is
the leading provider of temporary health insurance. For more
information on the company's other health insurance products and
services, please visit http://www.assuranthealth.com/ . The survey
was conducted online among a nationally representative sample of
college parents in March 2006, and its results carry a 95%
confidence with a margin of error of +/- 4 percentage points. About
Assurant Health In business since 1892, Assurant Health provides
health insurance coverage for more than one million people
nationwide. Assurant Health develops and provides a wide range of
individual medical, small group, short-term and student health
insurance products, as well as non-insurance products. Assurant
Health also provides consumer-choice products such as Health
Savings Accounts and Health Reimbursement Arrangements. With almost
3,000 employees, Assurant Health is headquartered in Milwaukee,
Wis., and has operations offices in Minnesota, Idaho, and Florida,
as well as sales offices across the country. Assurant Health
products are issued and underwritten by Fortis Insurance Company,
John Alden Life Insurance Company and Fortis Benefits Insurance
Company. The Assurant Health Web site is
http://www.assuranthealth.com/ . Assurant Health is part of
Assurant, a premier provider of specialized insurance products and
related services in North America and selected other markets. Its
five key business units -- Assurant Employee Benefits, Assurant
Health, Assurant Preneed, Assurant Solutions and Assurant Specialty
Property -- have partnered with clients who are leaders in their
industries and have built leadership positions in a number of
specialty market segments in the U.S. and selected international
markets. Assurant is traded on the New York Stock Exchange under
the symbol AIZ. The Assurant Web site is http://www.assurant.com/ .
About College Parents of America College Parents of America is the
nation's only membership organization dedicated to advocating for
and providing practical information to parents of current and
college-bound students. Based in Arlington, Virginia, it also
provides discounts on a broad variety of educational and consumer
products to help members save money while their children prepare
for, apply to and make the transition to college. The College
Parents of America Web site is http://www.collegeparents.org/ .
DATASOURCE: Assurant Health; College Parents of America CONTACT:
Peter Duckler, +1-312-423-4930, , or Philip Chang, +1-312-423-4924,
Web site: http://www.assuranthealth.com/ http://www.assurant.com/
http://www.collegeparents.org/
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