Health insurance doesn’t register on most students’ radars, but it should. Overloaded with tuition debt, classes and work, it’s easy for us to view health insurance as either unnecessary or intimidating.
It’s understandable for students to feel this way. Statistically, young adults are a healthy bunch and, unfortunately, insurance statistics reflect this. Though young adults age 19 to 29 represent 17 percent of the country’s population under age 65, they disproportionately represent 30 percent of the non-elderly uninsured, according to a 2005 Columbia University study. And though young adults are healthy in many ways, they are not exempt from obesity, pregnancy and HIV or other STDs. They are also more likely to go to the hospital for injury-related treatments.
This means learning the complexities of the health insurance world is one of the most necessary steps a student should take in his or her transition out of school. How you’ll get health insurance in the future and how fully you’ll be covered is highly correlated with good luck, but there are some things that you should know now.
First, breathe a sigh of relief, because as a student you are statistically better-off than most Americans. Most insurance providers define 19 as the “magic” age at which kids become adults and — if not enrolled in school full time — are kicked off their parents’ coverage. If you’re enrolled in school full time through the age of 25, you can most likely depend on your parents’ coverage.
If your parents do not provide insurance, then you can and should seek the University’s student health insurance. Any registered, fee-paying student is eligible to enroll, but the cost is not included in tuition or student fees. The plan works just like private group coverage, the kind you would get through an employer. Here are the basics:
Basic cost, called the premium, is $1,119 per year, and payments can be broken up quarterly or by semester. In addition to the $1,119 premium, the plan provides for a $300 deductible, which is the amount of money you would have to pay out of pocket before insurance starts to kick in. Once your covered medical bills exceed $300, insurance covers 80 percent of expenses up to $10,000. After $10,000, insurance will cover 100 percent of expenses up to $90,000.
This sounds expensive, especially if you’re already paying your way through school. But you should realize medical expenses are costly, and even simple procedures can devastate a student’s bank account.
Last, if you’re covered under your parents’ plan, you should know how to maximize your coverage. Graduation marks the end of “dependency,” according to insurance companies, but that doesn’t necessarily mean your coverage has to stop. In 1986, Congress passed the Consolidated Omnibus Reconciliation Act (COBRA), which gives health insurance beneficiaries temporary continued coverage for up to 18 months. Even though continuing coverage under COBRA costs more than having insurance through an employer’s plan, it’s important to stay covered.
Because health coverage is neither free nor simple in our country, it’s important for students to utilize resources like University Health Services to learn how the system works before they have to deal with it on their own.
Terrell is a finance senior.
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