So, you’re under 26 and in school full time. That means you can join or remain on your parent’s health insurance policy, opt for a university plan, or find your own individual health plan. Consider these pros and cons.
College/University Student Health Plan
Pros
- On average, campus plans can cost much less than an individual policy or being added as a dependent to a parent’s plan. Premiums for a university-funded health insurance plan can be as low as $30 annually, although the average is about $850 per year.
- Fewer bills to manage. At many schools, the cost of your university plan can be included in your tuition.
- Very little choice on coverage and benefits to tailor to specific needs.
- College plans act more like temporary health insurance than individual health insurance and may not cover as many benefits or health care providers.
- Typically more restricted health care provider network
- Coverage ends after graduation, requiring you to find coverage elsewhere before landing a job.
Cons
- Very little choice on coverage and benefits to tailor to specific needs.
- College plans act more like temporary health insurance than individual health insurance and may not cover as many benefits or health care providers.
- Typically more restricted health care provider network
- Coverage ends after graduation, requiring you to find coverage elsewhere before landing a job.
A Parent’s Health Insurance Plan
Pros
- Sometimes it is more affordable to add a dependent on to an existing health plan rather than purchasing a new one.
- With a parent’s plan, you will likely already have a general idea of the benefits and network of doctors available if your parents have been on the same plan for some time.
Cons
- You may find that your parent’s plan doesn’t cover out-of-network providers, which may be necessary if your school is far from home.
- You may not have access to college health clinics if they’re not included in your parent’s plan network.
- You could have problems joining a parent’s plan. For example, their plan could be “grandfathered,” meaning it may not allow you to be added as a dependent.
- If you can join, your parents will have to pay extra for adding a dependent to their current plan. Some employers have started passing much more of the cost for dependent policies on to employees.
Individual Health Insurance
Pros
- With a parent’s plan, you will likely already have a general idea of the benefits and network of doctors available if your parents have been on the same plan for some time.
- You may find that your parent’s plan doesn’t cover out-of-network providers, which may be necessary if your school is far from home.
- Full flexibility of choosing tailored coverage for your health and budget needs.
- Your coverage won’t end after you graduate.
- Many colleges require students to purchase health insurance. This would eliminate the cost of paying for mandatory student health insurance through universities.
Cons
- If you have pre-existing conditions, you could be denied coverage or not have benefits related to that health condition.
- Depending on your situation, it may be more affordable to stay on a pa rent’s plan or choose a university plan.
To check out our Student Health Insurance Survival Guide in its entirety, click this link:
