Many colleges throughout the U.S. provide some sort of student health care clinic. An astounding number of students choose to rely on those clinics rather than being covered by student health insurance. If so many use the clinics, why is it so important to find coverage? If you decide to pay for this form of insurance, what type of coverage should you look for?
Getting Student Health Insurance Coverage
Although there are plenty of reasons why student health insurance is important, one of the biggest reasons is the law. Many states require students to either a) join in a student health program (SHP) or b) have comparable coverage from a health provider.
For instance, according to Massachusetts law, "institutions of higher learning will automatically bill full-time and part-time students for individual membership in the health insurance plan sponsored by the colleges or universities. Students must purchase the school sponsored SHP or show proof of comparable coverage in an alternate health plan in order to enroll in Massachusetts colleges and universities." - Mass. Gov Website
Massachusetts isn't the only state that requires students to be covered by health insurance. New Jersey, Florida and Maryland, along with seven other states, require the same.
Another reason to be covered by student health insurance is risk. For example, although the instances of law students that need medical care during their college years are low, medical students are at a much higher level of risk. While training, during their residency and so on, medical students will be faced with a number of contagious diseases, both viral and bacterial.
Unfortunately, many student clinics are unprepared to deal with serious illness, which leaves uninsured students paying out-of-pocket medical costs. In fact, according to a 2008 report by the U.S. Government Accountability Office (GOA), "uninsured students incurred from $120 million to $255 million in uncompensated care for non-injury-related medical events in 2005." All of those millions were either a) paid by out-of-pocket by the student or b) by various state services such as Medicaid.
Lastly, many students are entering college at an age where they will be removed from coverage provided by their parents' insurance plan. Used to being insured automatically, many of these students are caught unawares by medical bills. In this case, being prepared for eventualities should be a large concern.
While many frown at the idea of paying for something that may never happen, one never knows what will happen in the future. Health insurance (of any type), is always a relief to have when something does occur.
Finding A Student Health Insurance Provider
Like many health insurance plans, student plans vary greatly from state to state and from provider to provider. Because of this, it's important to do your research before choosing a specific provider.
The Three Basics
You'll need to pay attention to three main factors while looking for providers. They are:
Co-insurance - How much of the medical bill will you be paying? What is the % payment ratio? For instance, one provider may expect you to pay 20% of the bill, while another may expect 30%.
Maximum Benefits - What is the total amount the provider will pay during the lifetime of your policy?
Deductible - How much will you be expected to pay before the policy becomes active? For many health plans, a $2,000 - $4,000 deductible is average. In other words, if your deductible is $4,000 you pay your bills out-of-pocket up to that amount, at which time the health plan becomes active and your payments drop down to the co-insurance rate.
Minimum Features
The plan you choose should also have a set of minimum features. These features include office visits, prescription drugs, hospital stay, intensive care, in and outpatient surgery, preventative checkups, mental disorders/substance abuse, pregnancy, lab and x-ray costs and pre-existing medical conditions.
As a final note, pay attention to your budget. While you should never choose a student health insurance provider by cost alone, your choice should be affordable enough that you can make your loan payments and other costs.
Safe Health Insurance.com is a leading online health insurance information source that provides free online health insurance quotes for individuals, families and small businesses. Compare
family health insurance, short-term health insurance, dental insurance, and health insurance for students. Visit online today.
