Health insurance 101: Coverage options for college students
Marcus Pickett
College comes with an array of new expenses -- books, tuition, meal plans and dorm furnishings. But don't forget about health insurance.
When it comes to coverage, college students have several options. While some students may struggle to make any solution a viable one, others may have multiple options to carefully consider.
Coverage through a parent's health plan
If your parents have health insurance that includes dependent coverage, staying on (or joining) one of their plans may be the best option. In the past, age restrictions on dependent coverage forced college students in some states off their parents' health insurance plans before graduation, according to the National Conference of State Legislatures. But things have changed.
The federal health care reform law includes a provision allowing adults under the age of 26 to obtain coverage through a parent's health plan, as long as that plan includes dependent coverage. According to Kaiser Health News, roughly 600,000 young adults took advantage of this provision in the first three months of 2011.
However, the U.S. Department of Health and Human Services reports that there are 9.3 million young adults whose parents do not have plans that include dependent coverage. Moreover, there are many graduate and non-traditional students who are over age 26. These students must find another way to get health insurance.
Those thinking about staying on their parents' plans should ask their insurer some questions first. For example, if you're attending school out of state, will you be able to find in-network providers there? If not, you may rack up some surprise out-of-network medical bills.
University health plans
Many universities offer group health insurance coverage for their college students, just as employers offer coverage to their employees. Insurers contract with colleges, which then extend coverage to their students.
According to UnitedHealthcare, this coverage is often quite affordable, compared with plans available in the individual market. Given the general youth and health of college students, they are less expensive to insure. Moreover, major medical coverage can be paired with university health centers, which cover basic health services, further driving down costs for insurers and insured alike.
Be sure to read all the find print. Not all university health plans are created equal. Health care providers back home may be out of network, and you may have high out-of-pocket costs like co-payments and deductibles. However, all student health plans do have to comply with health care reform's central provisions, meaning they can no longer impose lifetime or per-incident coverage limits like they could in the past.
Other options
Just like scholarships often are designated for certain sub-groups of the college student population, there are health insurance plans available to students who meet specific eligibility requirements. For example, Community College Student Insurance (CCSI) offers medical, dental and vision health insurance plans to all North Carolina community college students and their families. To qualify for CCSI health coverage, a student must be taking at least three credit hours.
If all else fails, you may need to seek out non-group health insurance quotes in the individual market. Premiums will likely be high, especially if you have a pre-existing condition. But if you are able to pay for health care out of pocket, catastrophic health insurance (also known as high-deductible health insurance) can lower your monthly payments.
Uninsured college students beware
Many college students (and young adults in general) go without health insurance to cut costs. In fact, roughly 21 million young people were uninsured in 2010, according to the advocacy group Young Invincibles. Yet accidents happen -- and a serious illness could generate thousands of dollars in hospital expenses. Having the right health coverage can ensure that you don't have to pay off medical bills in addition to student loans after graduation.
