Jeffrey Wade
College students are often required to have health insurance, and there are several options available to them. Students can usually purchase health insurance from their college or university, known as a student health plan or campus health insurance. Alternatively, students can apply for coverage through the ACA Marketplace, either on their own or with their parents. In addition, students may be eligible for Medicaid, a federal program that provides health coverage to those who qualify based on income and other factors. This article will explore the pros and cons of each option to help students make an informed decision about their health insurance coverage.
| Characteristics | Values |
|---|---|
| Cost | Student insurance: $2,000 to $4,000 per academic year, often included in tuition fees. |
| Medicaid: Free for those who meet the eligibility requirements for low-income health insurance. | |
| Coverage | Student insurance: May provide limited coverage. |
| Medicaid: Covers hospitalization, preventive care, prescription drugs, emergency care, and more. | |
| Eligibility | Student insurance: Available to students at colleges and universities that offer it. |
| Medicaid: Available to low-income individuals with income below 138% of the federal poverty level. Eligibility is based on household income, including parents' pay if the individual is a dependent. | |
| Dependents | Student insurance: N/A |
| Medicaid: If a student is a dependent on their parents' tax return, the parents' income is included when determining eligibility. | |
| Location | Student insurance: May not cover out-of-state care or charge more for it. |
| Medicaid: Benefits are usually only valid in the state where the plan originates. |
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What You'll Learn
Student health insurance eligibility
Health insurance is often mandatory for college students. While many colleges and universities offer affordable health plans, these plans may provide limited coverage. Students may be eligible for different types of health insurance depending on their age and circumstances.
Staying on a Parent's Health Insurance Plan
Federal health reform law states that children are allowed to stay on their parents' insurance plan until age 26, whether or not they are enrolled in school. However, before the ACA, eligibility to remain on a parent's plan was often contingent upon being enrolled in school full-time, and the cut-off age was typically 22, unless a state had its own provisions. Staying on a parent's plan may be a good option, especially if they work for a large employer, as there would be additional premiums associated with a university-sponsored plan or individual market coverage. However, if the student attends college in another state, network restrictions on the family plan could result in little or no access to healthcare in that state.
Student Health Plan
Some colleges and universities offer their own health plans, often called "campus health insurance" or a "student health plan." These plans are typically affordable and easy to enrol in, with coverage activated within 14 business days of registration, tuition payment, and enrolment in the plan. However, they may have limited benefits with high deductibles and may not cover services off-campus or for part-time students.
Medicaid
Medicaid is a federal program run by states and territories that provides health coverage to people who qualify based on income and other factors. The ACA called for the expansion of Medicaid, and 40 states plus the District of Columbia have expanded coverage to adults with incomes up to 138% of the poverty level. Students who are dependents on their parents' tax returns may qualify for Medicaid based on their parents' income. Those who file their own taxes and have a limited income may also qualify.
Marketplace Coverage
Students can apply for Marketplace coverage on their own or with their parents, depending on their age and whether they are claimed as dependents on their parents' taxes. If applying on their own, they may still need to include information about their parents and their income. Based on income, family size, and location, students might qualify for lower costs on Marketplace plans.
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Medicaid eligibility
Medicaid is a federal program that provides health coverage to eligible individuals. It is run by states and territories, and each state has its own requirements. To participate in Medicaid, federal law requires states to cover certain groups, including low-income families, qualified pregnant women and children, and individuals receiving Supplemental Security Income (SSI).
The Affordable Care Act of 2010 (ACA) established a new methodology for determining income eligibility for Medicaid, based on Modified Adjusted Gross Income (MAGI). MAGI is used to determine financial eligibility for most children, pregnant women, parents, and adults. It considers taxable income and tax filing relationships. The ACA also expanded Medicaid coverage to adults with incomes up to 138% of the poverty level in 40 states and the District of Columbia.
Additionally, individuals aged 65 and older, or those who are blind or have a disability, may qualify for Medicaid coverage. In Connecticut, this is offered under HUSKY C, and there are also specific programs for those with tuberculosis, those needing outpatient dialysis, and those requiring emergency medical services who do not qualify for regular Medicaid due to their immigration status.
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Income-based plans
If you are a student with a low income, you may be eligible for Medicaid, a government health insurance program. Requirements vary by state, but you may qualify for Medicaid if your income is below 138% of the federal poverty level. Eligibility is based on your household income, including your parents' pay if you are a dependent.
If you are a student who files their own taxes, you may qualify for significant subsidies if you are on a limited income. You may also qualify for Medicaid if you are in a state that has expanded Medicaid.
If you are a dependent, your parents' income will be included when determining eligibility for premium subsidies or Medicaid. If someone can claim you as a dependent on their tax return, all income on that return will be used to determine your subsidy. If you are not a dependent, only the income included on your tax return will be used.
If you are a college student, you may qualify for different types of health insurance depending on your age and circumstances. You may be able to find health coverage that is more affordable and provides better benefits than a campus health plan.
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Student health insurance costs
The cost of student health insurance varies depending on the college or university. Most elite private colleges and many public institutions automatically enrol students in student health insurance plans. According to an industry survey of prominent schools in the 2023-24 academic year, the coverage costs $2,924 a year at public colleges and $3,874 a year at private schools, on average. However, some sources state that campus health insurance can cost between $2,000 to $4,000 per academic year. This expense is usually included in a student's tuition bill.
Students can also shop for short-term or major medical health insurance plans depending on their coverage needs. Short-term plans can offer temporary health coverage for a single semester or even the whole school year, but these plans generally only cover accidents and unexpected illnesses, not preventive care or mental health. On the other hand, major medical plans offer more comprehensive, long-term health insurance for students. The cost of short-term plans is, on average, $158 per month, while major medical plans cost $231 per month.
Students can also stay on their parents' health insurance plans until they turn 26 years old, even after they graduate. If a student is a dependent on their parents' tax return, the parents' income is included when determining eligibility for premium subsidies or Medicaid. Staying on a parent's plan might be the best option if removing a child from the plan would not reduce the premium. However, if the student attends college in another state, network restrictions on the family plan could result in little to no access to healthcare in that state. In this case, it may be better to get a new health plan through the university or the exchange.
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Medicaid vs. student insurance coverage
Medicaid is a federal program, run by states and territories, that provides health coverage to people who qualify. Eligibility is based on income, with requirements varying by state. For example, in some states, eligibility is given to those with an income below 138% of the federal poverty line. Other factors that determine eligibility include age, domestic partnership, and health conditions.
Student health insurance plans, on the other hand, are offered by colleges and universities and can be an easy and affordable way to get basic insurance coverage. These plans may be included in a student's tuition bill and can provide comprehensive or limited benefits. They are considered individual-market coverage, and eligibility is often contingent on being enrolled full-time.
Students can remain on their parent's health plan until they turn 26, regardless of their living situation or marital status. However, if the student attends college in another state, network restrictions on the family plan could result in little to no access to healthcare in that state. In this case, it may be more practical to get a new health plan, either through the university or the exchange, that includes providers in the student's state.
Additionally, students who are U.S. citizens or lawful immigrants have the option to apply for health insurance through the ACA marketplace. All ACA plans are comprehensive and must cover essential health benefits, including emergency services, substance use services, and mental health disorder services.
When deciding between Medicaid and student insurance coverage, it is important to consider factors such as income, state of residence, and the specific coverage needs and requirements. Students should also remember that they may qualify for premium tax credits and cost-sharing reductions if they enroll in an individual major medical plan.
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Frequently asked questions
Student insurance, also known as a student health plan, is a type of health insurance offered by colleges and universities to their students. These plans often provide basic insurance coverage at an affordable cost and may be included in a student's tuition bill.
Medicaid is a federal program that provides health coverage to individuals who meet certain income or other eligibility requirements. It is administered by individual states and territories, and eligibility rules can vary by state.
Student insurance is typically offered through a college or university and provides basic health coverage to students. On the other hand, Medicaid is a federal program that offers health coverage to individuals based on income and other factors, with eligibility determined by the state. Student insurance may be more limited in terms of coverage and may not be transferable between states. Medicaid, while providing comprehensive coverage, is subject to state-specific eligibility rules and may not cover out-of-state care.
