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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

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Prescription drug insurance

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: I need health insurance when I graduate that covers my prescriptions.

A: You might need to modify your approach. Remember that health insurance policies that can be purchased by individuals generally does not cover pre-existing medical conditions. So any prescription drug expense that you already know about indicates that there is an underlying pre-existing medical condition. This is not an issue for employer-provided group insurance, but this is a major limitation of individual health insurance. Of course, the individual insurance is much less expensive, especially for a recent graduate. It generally makes sense to purchase a low cost insurance rather than seek out one of the very expensive insurance plans that covers prescriptions. With the $300-$400/month savings in premium expense, you could probably afford to cover the prescription expense. The "Secure STM" plan includes a discount prescription drug card at no extra charge that can be used to reduce the out-of-pocket cost of your current medication. This is a high quality insurance that is popular with college graduates that can be extended up to 3 years. If you really must have the prescription drug insurance and the discount card will not suffice, then consider a prescription insurance plan that is separate from your major medical insurance.


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