A 2006 report revealed that most young adults will no longer have the luxury of being covered by their parents’ health insurance plans when they graduate from high school or college and enter the job market for the first time.

High School students who go on to college often can still be covered by their parents’ healthcare insurance plan. However the report indicated that more than half of high school students who don't go to college experience at least a period of one year without medical coverage after they graduate before obtaining health insurance either on their own or through a new job. The same study indicated that almost 40 percent of college graduates also will be without health insurance during the first year after their graduation.

The mistake these young people make is that because they are strong and healthy they do not need health insurance. However this very same age group - 18-24 year olds - is the demographic most likely to suffer sports or auto related injuries

So what’s a parent to do? During this transition period it is unlikely that your young adult children cannot afford to purchase their own private health insurance. If you have had your kid on your company provided group health insurance you may have the option of continuing their coverage through COBRA. However this is your least attractive option as premiums paid through COBRA are significantly higher than when your child was actually covered under the health insurance policy.

Your best bet according to insurance industry pros is to look into a short term insurance policy. Short-term health insurance is specifically designed to help people who are in transition. As the name implies short term policies also called “gap” insurance are low cost health insurance plans that are designed to be in effect for a fixed period of time, usually 6 month to a year. Short-term health insurance plans are typically easy to comprehend and easy to afford. In most states comprehensive short-term health insurance plans with a minimum $1000.00 deductible can be purchased for under $50.00 per month.

Another option for affordable health insurance coverage for recent grads is to look at what their Alumni Association may offer. Offering low cost heath insurance to members is an incentive used by many Colleges and Universities to shore up the ranks of their Alumni Associations.