Student Health Care Plans & Programs

Although most insurance providers allow young people to remain on their parents' policies while they are still in college or graduate school, the current unemployment crisis has many families worried about how they can provide coverage for their students when they themselves are facing layoffs and a loss of employer-sponsored health care.  It is important that you start thinking now about what sort of insurance you can find – and afford – for your college-bound child.   

As a parent, one of the first things you need to do, if your student has to find (and fund) his or her own insurance is to make sure that he or she does not decline coverage altogether.  Many young people feel like health care is an expense they can pass on, believing that because they are healthy, active, and low risk, they do not have to worry about major medical costs.  However, it is simply irresponsible not to have a medical policy.  Illnesses and injuries can pop up out of nowhere with staggering costs.  Those costs can quickly sink a family, or a struggling student, into deep debt.  Don't allow your child to be a victim.

Also, don't assume that your university student will definitely be covered by the family's insurer.  Some companies place limitations if he or she is attending school out of the state or region.  Others have very strict guidelines regarding what constitutes a “full-time student,” so make sure your child will not get dropped from the plan if he or she has a reduced course load one semester.  You will also want to make sure that attending college far from home will not pose a challenge when he or she requires a referral from a primary care provider to a specialist or other more complicated procedures.   

One thing you can do is find out if the college your son or daughter is attending offers health insurance.  More than half of all U.S. universities do.  While considering this option, be aware that some school-sponsored plans have very stringent limitations on how much they cover each year or as lifetime limits. Low maximum benefits can be a concern, but having even a limited insurance plan is better than not having one at all.  Just make sure you know what to expect before signing up.

Another option to consider is an individual plan.  Young, healthy students are likely to have some of the lowest premiums, so while you will be paying more than you would with an employer-sponsored policy, you will be paying less for your child than for an older or infirm individual.    Because these plans do not vary much in cost even with a low deductible, you may also want to purchase an individual policy as a secondary form of insurance for a student who is already covered under a high-deductible family plan. 

To learn more about your options, begin requesting quotes from providers and agents.  They can also help you to evaluate the specific needs of your family, which may include a chronic illness, student studying overseas, or some other difficult issue.  Navigating the system can be a real maze, but if you are careful and weigh your options, you can rest assured that a good deal will follow!