When to Sign up for a College Health Insurance Plan
As students prepare to travel to campuses across the country, there is one financial decision they need to make that has nothing to do with the FAFSA or textbooks: what to do with their health insurance.
Most students will be able to stay according to their parents’ plans (you can stay there up to age 26 under the Affordable Care Act) if possible, and it probably makes financial sense. But there are several reasons why they might consider their college health insurance plan.
Consumer Reports indicates that if you go to an out-of-state school, you may not have many local, in-network health care options. While you can schedule check-ups and other day-to-day care during your school breaks, you do not want to be caught in a network facility if you need a medical emergency. And if your parents don’t have insurance through an employer, live apart, or just value your privacy, you may have to find your own plan.
If necessary, ask your school how much insurance premiums, copayments, deductions, and other out-of-pocket expenses cost. Your premiums “can be tied to tuition fees billed for each semester and can go up to several thousand dollars a year,” says CR, so you’ll need to get a detailed breakdown.
Your school may offer financial assistance to cover the cost of this insurance, so ask about that as well, and your student loans may also cover the costs, according to Bankrate (of course, you will return this amount later).
One downside besides cost: This may not cover you when you are not in school full time, such as in the summer, which means you will need to buy a short-term plan .
Another note: The Huffington Post reports that some schools automatically enroll all students in their health plans. “If a student doesn’t need a plan or doesn’t want one, they must provide proof that they have coverage equal to what the school is offering, and then apply to waive the school’s plan,” writes HuffPo’s Ann Brenoff. “If they don’t file a waiver by the deadline, they’ll just buy themselves a second – and probably unnecessary – policy.” Refusal depends on the school.
However, these plans should cover everything the ACA stipulates, including pre-existing conditions and things like preventive care, emergency care, and mental health care. If you can’t stay in your parents’ plan and can’t find a good alternative in the individual market, they can offer you the coverage you need.