Student Health Insurance
As if you didn't have enough on your plate to worry about in preparation for college, there is one last thing that you must make sure not to leave home without – health insurance. In fact, student health insurance is so important that 30% of colleges nationwide required students to have it during the 2007-2008 academic year. Student health insurance may even be mandated by the state, in certain cases!
There are numerous reasons why colleges require student health insurance, but there are also numerous options. So let's get started by taking a look at why you may be required to carry insurance as a student.
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The dangers of being an uninsured student
The main reason why student health insurance is mandated is because it benefits all students. Uninsured students are more likely to forgo necessary health care. These students may incur expensive health care costs. Of course, somebody has to pay for the care of an uninsured student, so these costs are usually passed on to those who maintain their coverage, in the form of higher premiums.
As a student you know that paying for the health care of others hardly seems fair, given that you're already strapped for cash due to tuition, books, and living expenses – which is precisely why many colleges will require you to carry insurance. On the other hand, if you're in the group of 80% of students who carry some form insurance, then you'll likely have access to some of the options described below.
Employer-sponsored student health plans
The majority of college students are covered under employer-sponsored group market plans (through their parents' employers), which are health care plans many companies offer to employees and their dependents. Different companies have different coverage policies, so it's important to confirm the conditions under which you'll receive coverage.
Most employer-sponsored plans will only cover you if you're a full-time student who is no older than 23 years of age; some companies may offer more attractive rates if you maintain a high GPA. Keep in mind: If you are covered by an HMO or PPO, and you attend school outside of your provider's service network, then you might be entitled only to emergency services – or none at all! Think you may not qualify? Don't be caught on campus without health insurance – request a quote here.
Public health insurance programs (COBRA, Medicaid, SCHIP)
If you're not eligible for an employer-sponsored health care plan as a student, then you can seek public options. Public options include Medicaid, the State Children's Health Insurance Program (SCHIP) and COBRA. Not everyone can obtain this sort of coverage, given the stringent requirements; COBRA allows for only 36 months of coverage and is fairly expensive, and both Medicaid and SCHIP apply to children from low-income families who are no older than 18 years old.
Group student health insurance plans
The second most popular type of health insurance plan for college students is the group plan offered by your school. While this type of plan typically requires you to pay the full premium for coverage, making them pricier than employer-sponsored plans, they also offer comparable or better benefits.
According to the General Accounting Office (GAO) survey of 340 schools across the country, annual premiums for group-based student health insurance plans ranged from roughly $30 to $2,400, depending on a melting pot of factors, including the plan's past claims history, the area of coverage, and the services covered. If you're worried none of the above plans apply to you, then you can always opt for private health insurance.
Private student health insurance plans
Students who have exhausted all other options may turn to a private health insurance plan in the individual market. Rather than assessing the risk of an entire group, premiums are calculated on an individual basis for this type of plan.
Sources
http://www.insurance.ohio.gov/documents/ParentswithCollegeKids.pdf
http://www.gao.gov/new.items/d08389.pdf
http://www.doi.ne.gov/brochure/conalert/out08178.pdf
http://healthinsurance.about.com/od/faqs/f/College.htm