Problems With Health Insurance for College Students

College can be a time of great stress as students learn to make decisions about life and school independently of their parents. Among these decisions is how to obtain health insurance. In fact, Sandra Block of USA Today, in her August 20, 2010 update, states that without adequate health insurance, an accident or serious illness could saddle students with thousands of dollars in medical bills and force them to drop out of school. Though several health insurance options are available to college students, each presents its share of challenges.

Parents' Plans

• Block states that "more than two-thirds of college students are covered by their parents' plans..." Prior to President Obama's Health Reform Act of 2010, many students were dropped from their parents' insurance plans after they turned 23 years of age. The Health Reform Act of 2010 allows students to receive coverage until the age of 26. However, a number of problems exist for students covered by their parents' plans. According to James Turner, director of student health at the University of Virginia, students who attend college far away from home may be at a disadvantage because they may not have access to physicians approved by their parents' plan. As a result, many parents face the possibility of higher deductibles and co-pays.

College Plans

• Many colleges require students to have health coverage even if it means signing up for the institution's plan. Block quotes a 2008 GAO study stating that "more than half of colleges and universities sponsor their own health insurance plan for students." For students not covered through their parents insurer, this could be a viable option, especially since premiums are low for college insurance plans. However, many plans do not cover major health conditions or pre-existing conditions and may have caps on the amount of coverage provided for certain health conditions. An investigation by New York attorney general Andrew Cuomo in April of 2010 confirmed this and revealed that many colleges were charging excessive premiums in comparison to the services they provided. The investigation has prompted many colleges to review their insurance plans.

Individual Insurance Plans

• Many insurers offer individual insurance plans specifically for college students. These plans could be ideal for students who work or have extra income, as plans can be very affordable. In Block's article, Bryan Liang, executive director of the Institute of Health Law Studies at California Western School of Law, states that premiums for students can be as low as $600 annually. GradGaurd offers a comprehensive insurance plan for college students who do not have insurance coverage. Still, choosing an individual insurance plan does not come without drawbacks. These may include higher deductibles and co-pays and may preclude individuals with pre-existing conditions from receiving coverage.