Student Health Insurance
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Student Health Insurance
By: Tony Novak
Students often wonder if they really need
health insurance. It seems like
a reasonable question when you are young and healthy and seemingly
invincible. After all, almost everyone who knows how to access the
health care system is provided with basic health care services and
acute care (like emergency care) in the United States, regardless
of whether or not they have health insurance. Young adults tend
to use health care services less often than any other group. The
odds are that a young adult will go more than 12 months without
any need for health care. Even among those who need health care,
the likelihood of exceeding $1000 annual healthcare expenses is
very small. So it is reasonable to wonder whether a young adult
really needs health insurance at all.
But the situation changes when we consider
the more extensive and more costly types of health care. The ability
of a patient to obtain top quality medical care for the most serious
types of health care - things like transplants, extended hospital
care, physical rehabilitation, and long term outpatient care - depend
more on whether the patient has adequate health insurance than any
other factor. A simple attack of appendicitis could easily wind
up costing more than $25,000. Even an affluent family will have
difficulty arranging adequate medical care without insurance coverage.
Unfortunately, if you wait until you need this type of care it will
be difficult or impossible to buy health
insurance that covers these items.
Often the most immediate insurance concern
for young people is the fact that most colleges, trade schools,
internship programs, sports teams, community-sponsored travel opportunities
and many other activities require health insurance as an admission
requirement. Without health insurance, you do not pass "go".
So there is usually no question about it - most young people with
ambitions to advance their education need to have some type of health
insurance.
Coverage Options
There are many types of health insurance
plans available to young adults. The most popular plans are
listed below.
Parent's Policy - Most students continue to be covered under a parent's
policy. If this option is available, it is almost always the best
option. But most health plans require that proof of full-time enrollment
be provided. Be aware of the maximum age for this benefit. In many
cases this coverage will expire when the student reaches age 23
(or at another age as stated in the insurance policy).
Employer Group Coverage - Most employers
provide health insurance to their full time employees and pay for
most of the cost of this employee benefit. This is called group
health coverage. This benefit is completely under the control of
the employer. Many people do not realize that there is no requirement
for an employer to provide this benefit. Most group health plans
require that new employees wait a few months before becoming eligible
for coverage.
School-Sponsored Coverage – These are
usually uninsured managed care arrangements to provide care to students
in the local area of the college or university.
Student Medical Policies – These are
privately insured major medical policies designed specifically for
students. These are portable and offer coverage to the student in
any location in the U.S. These plans also cover graduate students,
and are available regardless of age or health. In most parts of
the U.S., students can buy a high quality health insurance plan
for less than $70 per month at www.medsave.com.
Short Term Medical Policies - Interim or
gap insurance policies are available to cover from one to 12 months.
This coverage is inexpensive and easy to obtain online in most states.
The quality of the coverage is excellent except that it does not
cover pre-existing conditions. These provide coverage in the U.S.
only.
Individual Medical Policies - Permanent policies
that you buy directly from an insurance company offer excellent
coverage, strongest financial guarantees, and the most stability.
These often provide worldwide coverage. But all this comes at a
higher price and coverage is issued for a minimum of 12 months.
Travel Coverage / International Policies
- Students planning overseas travel should purchase a separate medical
insurance plan for the time that they are traveling, since most
student health plans do not cover charges incurred outside of the
U.S. These policies are specifically designed to pay for medical
expenses and deal with the other international complications (language,
currency and business issues) typically incurred while obtaining
medical treatment overseas.
Terms to Know
Deductible or Co-payment - this is the portion of the bill that
you pay before the insurance comes into play. These help reduce
the cost of the insurance.
HMO - stands for "health maintenance organization". The
HMO may pay to keep you healthy, rather than only cover problems
hen things go wrong. HMOs tend to be popular among young healthy
people, but criticized by people receiving more serious medical
care. Private physicians tend to feel that they lose control over
the quality of a pateint's care when an HMO is involved.
Indemnity plan - means that the policy reimburses you for any ordinary
and necessary medical expenses. This is the least restrictive type
of coverage but also the most expensive.
Managed Care - this means that the insurer has some authority to
influence the type of health care you are provided. This cuts healthcare
costs but may also limit your treatment.
Pre-existing condition - a medical situation that started before
your insurance policy that may not be covered by the health insurance
policy.
Premium - the cost of the policy, usually ranging from $25 to over
$200 monthly.
Tax-deductible - reduces your taxable income and thereby reduces
your total tax due at the end of the year. Most health
insurance is not tax deductible by individuals.
Tax-free - the benefit provided by health insurance is usually tax-free.
This means the value of the coverage received as well as any cash
benefit paid as the result of a claim.
Underwritten - this means that not everyone will be accepted because
acceptance is based on individual medical history. The insurance
company reviews each application and selects the healthiest applicants
for enrollment. Premium rates are lower for those accepted, but
these plans offer no solution for people with pre-existing health
conditions.
You can find more Health
Insurance Information here
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