Healthcare Reform Confusion May Create Coverage Gap for College Graduates

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USI Affinity, Collegiate Insurance Resources (CIR) warned today that the confusion surrounding healthcare reform may leave many college graduates without medical coverage. According to CIR’s customer service department, many calls are coming in from new college graduates who mistakenly believe they are now covered by a national healthcare plan or believe other aspects of the healthcare reform bill began upon its approval. Some may be covered by a parent’s plan, but many are not covered at all.

At CIR, we know that healthcare reform is causing a lot of confusion...

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USI Affinity, Collegiate Insurance Resources (CIR) warned today that the confusion surrounding healthcare reform may leave many college graduates without medical coverage. According to CIR’s customer service department, many calls are coming in from new college graduates who mistakenly believe they are now covered by a national healthcare plan or believe other aspects of the healthcare reform bill began upon its approval. Some may be covered by a parent’s plan, but many are not covered at all.

“At CIR, we know that healthcare reform is causing a lot of confusion – we hear it every day in our customer service center,” said Philip J. Super, president of Collegiate Insurance Resources. “Graduates don’t realize they may have a lag in coverage or may not be covered at all, and the result could be hefty medical bills at a time when they are just beginning to repay college loans. We believe that new graduates need protection from unexpected financial disaster at this critical time of transition.”

New graduates rarely think of the long-term consequences that having uninsured medical bills can bring – one of the most costly being to their credit score should those accounts go into collections. This can significantly hurt their future buying power when they want to purchase a car or home – either in the way of being denied or paying more in interest rates; which may translate into thousands of dollars paid unnecessarily on a loan.

Even if a graduate secures health insurance coverage in the future and successfully rides out the gap in coverage without major financial consequences, they might be surprised to learn that any medical conditions that occurred during that gap may be excluded from coverage under their new plan for a period of time.

CIR offers GradMed® short-term medical insurance through nearly 200 college and university alumni associations that endorse the plan. For more than 20 years, GradMed has provided affordable coverage for graduates, those between jobs or others simply waiting for employer–sponsored coverage to begin.

Many college graduates have already benefited from the coverage that GradMed provides after just one accident – keeping their credit scores in good standing and reducing further financial risk. Actual claims paid to graduates insured by GradMed over the years include: $500,000 for an unexpected fall, $50,000 for a fractured ankle, and $196,000 for diagnosis and initial treatment of breast cancer1.

“GradMed was easy and reliable. It's perfect for anyone straight out of college without a job or people in-between jobs,” said a Texas Tech graduate who is a breast cancer survivor. “Going without coverage would be a big mistake because you never know what could happen, and I'm proof of that.”    

1 GradMed Claims history, 2009

About Collegiate Insurance Resources:
The Collegiate Insurance Resources division of USI Affinity is an insurance agency that serves alumni and their families from nearly 400 colleges and universities nationwide. To find out more about CIR, visit http://www.CollegiateInsuranceResources.com or call 1-800-922-1245. Founded in 1994, USI is a leading distributor of property and casualty insurance and employee benefits products to businesses throughout the United States. USI is headquartered in Briarcliff Manor, NY, and operates out of 66 offices in 18 states. USI is a portfolio company of Goldman Sachs Capital Partners, a private equity affiliate of Goldman Sachs & Co. Additional information about USI may be found at http://www.usi.biz.

Contact:
Jeff Roedel
USI Affinity Collegiate Insurance Resources
614-340-6130
http://www.usiaffinity.com

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Jeff Roedel

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