Health Insurance for the College-Bound
Going off to college brings with it many challenges, from getting good grades to deciding on a major.
One thing a college student should not have to worry about is having health insurance.
A recent study by the Government Accounting Office (GAO) revealed that among college students aged 18 through 23, 20 percent, or 1.7 million, did not have health insurance in 2006. Furthermore, this study also showed that uninsured students were more likely to be part-time students, non-white students and students from lower-income families.
This figure is disturbing in part because this same study found that uninsured students incurred $120 million to $255 million in uncompensated care for non-injury medical events in 2005. The majority of these events included visits to office-based providers and hospital emergency rooms.
In addition, the GAO estimates that approximately 30 percent of all colleges nationwide now require students to have health insurance before they can enroll.
Fortunately, there are several health insurance options from which college-bound students can choose.
You Parents' Health Insurance
Most college students between the ages of 18 and 23 typically receive their health insurance coverage from one of their parents' plans. This option is ideal because it ensures that students do not experience an interruption in their coverage, which can impact their chances of obtaining health insurance in the future.
If you select this health insurance option, it is important to understand fully the health insurance policy's dependent requirements. For example, a report from The Commonwealth Fund revealed that 60 percent of employer-sponsored health plans required dependents over the age of 18 to be enrolled as full-time college students. In addition, different plans have different age cut-off points. Some health insurance plans will provide coverage for a dependent through the age of 25, while others might cease coverage at 23.
School-Sponsored Health Insurance
Another health insurance option for college students is to obtain a school-sponsored plan. According the GAO student, 57 percent of colleges nationwide now offer school-sponsored health insurance plans for their students. A breakdown of those colleges offering health insurance showed that student health insurance plans were offered during the 2007-2008 academic year by 82 percent of four-year public colleges, 71 percent of four-year private nonprofit colleges and 29 percent of two-year public colleges.
Compared to individual health insurance plans, eligibility requirements for a school-sponsored plan are generally less restrictive. Additionally, some school-sponsored plans will allow students to extend their coverage past graduation.
The possible downside to a school-sponsored health insurance plan is the costs and coverage can vary significantly from school to school. For example, some school-sponsored plans might not offer coverage if you travel outside of the United States so you would need to purchase additional insurance if your travel plans included any foreign destinations.
Individual Health Insurance Plans
If you are unable to stay on your parents' health insurance plan and your school does not offer a school-sponsored plan, you always can obtain an individual health insurance plan. Many people might believe that they could never afford this option. However, there is a great deal of competition in today's health insurance market, and this competition tends to bring about great deals on rates.
When considering an individual health insurance plan, it is best to do as much research as possible before making a decision. Would you prefer the affordability of an HMO or the choices offered by a PPO? How much freedom do you want in choosing your own physician and going to see a specialist?
Finally, the most important step you can take in obtaining individual health insurance is to collect as many quotes as you can to ensure that you are getting the best deal possible. By completing our online form, you will receive several affordable health insurance quotes that you will be able to compare.
