Affordable Health Insurance for Young Adults

Video: Health Insurance Basics

You just got a job.

Most employers pick up a share of the premium, making this the least expensive form of coverage. If you're generally healthy, pick a plan that covers annual physicals, routine diagnostic tests, and other preventive services. A high-deductible plan may siphon less from your paycheck, but you'd better be able to afford the full deductible if needed. A "health savings account" will make saving up less painful and is tax deductible as well.

Downside: Plans and plan options may be limited. To avoid paying a premium higher than necessary, buy only as much coverage as you need. Many employers provide online tools to help figure this out.

You're a newlywed.

If both of you can sign up for employer-sponsored health coverage, review both sets of options to see which is a better fit.

Downside: It's easy to forget about maternity coverage when you pick a plan. If you're thinking about a baby, get the coverage.

You're strapped and not earning much.

If your income is no greater than an amount defined by each state and pegged to the federal poverty level (currently $10,830 for a single adult), you may qualify for Medicaid coverage. It can be comprehensive and have little or no cost. You can see whether you qualify at benefits.gov.

Downside: Many states set the income bar so low that unless you're not a dependent, a parent, or disabled, it is difficult to qualify. Seven states put it right at the poverty level.