Paul Sanchez
College students are often enrolled automatically in campus health insurance plans, which can cost thousands of dollars. However, if they are already covered by their family's insurance plan, they can usually waive the charge. While some colleges do not offer a choice of plans or insurers, students can apply for coverage through the Marketplace, where they may qualify for lower costs based on income, family size, and location. Students can also opt out of their college's health plan and purchase insurance through Covered California, where they may receive tax credits to help pay for a private plan or receive low- or no-cost insurance through Medi-Cal.
| Characteristics | Values |
|---|---|
| Mandatory health insurance for college students | Yes, colleges require students to carry comprehensive health insurance. |
| Opt-out option | Yes, but it's on the student to opt out. |
| Cost of student health insurance | $4,050 at Northwestern University in 2019-2020; $7,128 at Stanford University in 2023-24; $5,144 at Northwestern University in 2023-24; $4,636 at Brown University in 2023-24; $4,210 at the University of Pennsylvania in 2023-24; $4,762 at Emory University in 2023-24. |
| Cost increase | Yes, costs rise yearly, even faster than tuition costs. |
| Disclosure of costs | No, colleges often do not disclose the cost of health insurance clearly. |
| Exemptions | Students below the tax-filing threshold are exempt. Religious exemptions are available for universities with ACA-compliant health plans that don't cover contraceptives. |
| Student health plans as health insurance | Yes, student health plans count as health insurance under the Affordable Care Act. |
| Student health plans and essential benefits | If a student health plan is "fully insured", it must cover all 10 essential benefits. If it is "self-insured", it might not be required to cover essential health benefits. |
| Opting out of student health plans | Students can opt out of their student health plans and purchase health insurance elsewhere. |
| Student health plans and financial aid | Students enrolled in their school's health insurance plan are not eligible for financial aid for health insurance. |
| Out-of-state colleges | If a student attends college out of state, their family health insurance may not provide sufficient coverage. |
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What You'll Learn
Mandatory health insurance fees at colleges
Mandatory health insurance fees are a common requirement at colleges, with roughly 90% of major four-year private colleges and universities automatically enrolling students in health insurance plans. This can result in students and their families incurring significant additional costs, sometimes amounting to thousands of dollars. While colleges often promote the waiver process, allowing students to opt out of the college's health insurance plan if they already have adequate coverage, the process can be complicated and time-consuming.
Colleges typically require students to carry comprehensive health insurance to ensure that all students have access to essential healthcare services. This is particularly important for students with chronic medical or mental health conditions, who may struggle to find affordable and accessible care without insurance. Additionally, international students and those from underinsured families may benefit from the added protection provided by campus health insurance.
However, for students who already have comprehensive health insurance, the mandatory health insurance fee charged by colleges can feel like an unnecessary expense. In some cases, students may end up paying for duplicate coverage, resulting in higher overall costs for their families. This is especially true for students whose insurance policies provide comprehensive coverage in their home state but may not offer the same level of coverage while they are studying out of state.
To avoid unnecessary costs, it is essential for students and their families to carefully review the college's health insurance requirements and waiver process. By comparing the college's health plan with their current coverage, students can make an informed decision about whether to opt out of the college's plan. Additionally, students can explore alternative options, such as applying for coverage through the Marketplace, based on their income, family size, and location.
While mandatory health insurance fees may be a significant expense for college students and their families, it is important to consider the potential benefits of having comprehensive health coverage while away from home. By understanding the specific provisions and requirements of their health plan, students can make informed decisions about their healthcare coverage and ensure they have access to the services they need during their college years.
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Waiving student health insurance
Many colleges in the US require students to carry comprehensive health insurance and automatically enrol them in campus health insurance plans. However, if you already have adequate family insurance, you can waive the college insurance plan, saving you thousands of dollars.
College health insurance exists to cover students who arrive on campus without health insurance. It is particularly beneficial for international students, people from underinsured families, and students with chronic medical or mental health issues.
If you already have solid family insurance, you can waive student health insurance. However, you must ensure that your current insurance plan provides out-of-state coverage and is valid in the state where you study. For example, if you have a regional HMO in Virginia but attend college in Colorado, your insurance may not cover you in your new state.
To waive college health insurance, you must demonstrate that you have comparable alternate health insurance coverage. This includes meeting the requirements of the Affordable Care Act, such as coverage for routine, urgent, and emergent care, and providing medical evacuation and repatriation coverage.
Colleges usually notify students and their families about auto-enrolment in health insurance and promote the waiver process through emails. Deadlines for submitting waivers vary across colleges, but they are generally soon after classes start in the fall.
Student Health Insurance Costs
Student health insurance costs vary across colleges. Stanford University charged $7,128 for student health insurance in 2023-24, while the annual fee at Northwestern University was $5,144, $4,636 at Brown, $4,210 at Penn, and $4,762 at Emory.
Alternatives to College Health Insurance
If you do not have family insurance, you can still access affordable health insurance through the Marketplace, based on your income, family size, and location. You can enrol during the Open Enrollment Period, which runs from November 1 to January 15 each year.
In conclusion, while college health insurance is essential for some students, others can save money by waiving it if they already have adequate family insurance coverage. It is important to carefully review the requirements and deadlines for submitting a waiver to avoid unnecessary expenses.
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Student health insurance for international students
Many colleges require students to have comprehensive health insurance and will automatically enrol students in campus health insurance plans. This is to cover students who arrive on campus without insurance, including international students, people from underinsured families, and students with chronic medical or mental health issues. However, this insurance can be costly and unnecessary for students who already have comprehensive coverage.
If you are an international student studying in the US, there are several insurance providers that offer plans tailored to your needs. These include:
- International Student Insurance (ISI), which offers comprehensive and affordable health insurance plans for international students on OPT, with rates starting at $29/month. They offer plans for students on F (includes OPT), M, or J visas, as well as for students studying abroad.
- ISO Student Health Insurance, the world's largest insurance manager solely for international students, offering affordable, comprehensive plans that meet school and visa requirements.
- Compass Student Insurance, which offers health insurance plans for international students, scholars, and professionals in the US. Their plans meet the insurance requirements for F-1, J-1, M-1, H-1B visa holders, and those on OPT.
If you are enrolled in a student health plan, you can still apply for coverage through the Marketplace. Depending on your income, family size, and location, you may qualify for lower costs.
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Student health insurance for out-of-state colleges
Health insurance in the United States is complex, and even more so when it comes to college students, especially those attending out-of-state colleges. Many colleges require students to carry comprehensive health insurance and automatically enrol students in campus health insurance plans. This is to ensure that students arriving on campus without insurance are covered. However, this can result in students paying thousands in fees for duplicate coverage.
If your child is attending an out-of-state college, it may be advisable for them to enrol in a separate health insurance plan in the state where they are studying. This is because some health insurance policies do not work well when you are out of town or out of the coverage area. For example, if your insurance policy is based in Virginia, but your child attends college in Colorado, they may struggle to find healthcare providers within easy reach.
Most schools offer a student health plan, which can be an easy and affordable way for your child to get basic coverage when they are away from home. Student health plans usually count as qualifying health coverage, so they are considered covered under the healthcare law and won't be penalised for not having insurance. However, it is important to verify this with your child's school. Even if your child has access to a student health plan, they can still apply for coverage through the health insurance marketplace in the state where they are studying.
If your child is enrolled as your dependent on your health plan, and they need medical assistance outside of the plan's service area, they will need to access out-of-area care. Most health plans will only cover emergency medical conditions from unexpected illnesses or injuries. Therefore, it is important to research your current plan and see what services are covered out of the service area to determine if you need to look into alternative coverage for your child.
If your child is moving out of your health plan's service area, this is considered a qualifying event, which allows your child to update their health insurance policy. It is recommended to enrol early to avoid any gaps in coverage.
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Student health insurance and tax implications
Student health insurance can be a significant expense, with some elite private campuses charging over $7,000 for annual coverage. While student health insurance is not mandatory, many colleges require students to carry comprehensive health insurance and will automatically enrol students in campus health insurance plans. This can result in students paying for duplicate coverage if they are already covered under their family's insurance plan.
Colleges often promote the waiver process, allowing students to opt out of the campus health insurance plan if they already have adequate coverage. However, the waiver process can be complicated, and families may not realize they need to opt out. As a result, many students end up paying for duplicate coverage.
From a tax perspective, student health insurance premiums are generally not considered qualified education expenses for tax credits. The IRS defines qualified education expenses as costs directly tied to coursework and degree completion, and health insurance is classified as a personal expense, similar to housing and transportation. While student health plan premiums are eligible for a tax credit, this rarely makes a difference due to most students' low income.
However, it's important to note that if you are no longer claimed as a dependent on your parent's taxes, you can apply for Marketplace coverage on your own. Your savings will depend on your income and family situation, and you may qualify for lower costs or even free or low-cost health coverage under certain programs.
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Frequently asked questions
No, college students are not exempt from insurance fees. In fact, colleges often require students to carry comprehensive health insurance. However, if a student is covered under their family's insurance plan, they can usually waive the health insurance charge with the college.
A "student health plan" refers to a special policy of health insurance that colleges and universities make available to their enrolled students. Student health plans are considered individual-market coverage and are available to registered students and their dependents.
The cost of student health insurance varies depending on the college or university. For example, Stanford University charged $7,128 for student health insurance in 2023-24, while Northwestern University charged $5,144. These costs tend to rise yearly, even faster than tuition costs.
Yes, international students can benefit from campus health insurance. Other groups that may benefit include people from underinsured families and students with chronic medical or mental health issues.
