Navigating College Health Insurance

With the fall school semester around the corner and students preparing to head off to college, one detail that could easily be overlooked is health insurance. Most likely, your child has been on your insurance policy since birth. And, even though a parent’s health insurance plan typically covers dependents until the age of 26, it may come as a surprise that their coverage needs may change for college, especially for out-of-state students.

Before you pack your child off to school, you’ll want to consider whether to keep them on your current policy or opt for a school-offered insurance plan.

Parent’s Policy                                                    

If your child is attending a school in another city or state, and you choose to have them stay on your policy, your child can continue to use their preferred doctors/providers when they are home for the summer or come home to visit. However, you need to research in-network providers where your child will live during the school year. It’s especially important to ensure proper coverage for students with chronic illnesses or those who are at a higher-than-average risk for injuries, such as college athletes.

School-Sponsored Student Policy

The student health insurance offered by the college will be accepted by a network of providers in the college town, most likely including the on-campus student health center. However, with student health insurance, there may be very few in-network providers for when your child is back home. While most student health insurance plans follow the regulations set forth by the Affordable Care Act, you may find that your student health insurance does not provide coverage as comprehensive as the parent’s plan.

Some schools may provide specific health grants to cover insurance costs for students with high financial needs. If your school does this, you should note that these grants are generally unavailable for students who decide to stay on family insurance, so check with your child’s school.

Coordination of Benefits

If you decide on double health insurance coverage (parent’s insurance and school-sponsored insurance), one of your plans will be your primary plan and the other your secondary plan. Your claims will be sent to your primary insurer and forwarded to your secondary insurer if your primary plan does not cover those costs.

If deciding between a parent’s policy and a school’s policy, consider whether there is an annual deductible, a monthly premium, co-pays (including prescription drugs), dental coverage, and vision coverage.

Medical Emergency Documentation

Another thing you have been doing since your child’s birth is stepping in to take charge whenever the need arises. However, once your child turns 18, proactive preparation is needed, or you may be unable to help your child (new adult) amid a medical/health emergency. Prepare the proper legal documents for a medical emergency. You will no longer be able to receive their medical information or make medical decisions without the proper paperwork. Suggested documentation includes a HIPAA release, advance directive and healthcare proxy, living will, and durable power of attorney. If your child is going to school in another state, confirm that the documentation also works for the state where they are attending school.

College Health Insurance Checklist

Here are a few items to consider as you work to ensure your child is medically prepared for college.

• Review your child’s college requirements for minimum essential coverage (MEC) for their students.
• If you opt out of school health insurance, review any deadlines and notify the school of your decision to do so. For some schools, this takes place during the registration process. The school will require you to provide proof of insurance.
• If you’re considering enrolling in the college’s health insurance plan, check to see if removing your child from your plan would save you money. For families that will stay on a family plan, it may make more sense to double-insure your child.
• If you plan to use the college’s health insurance plan only, notify your health insurance company that you intend to remove your child from your current policy. This should fall under your plan’s special enrollment period, which allows you to add or remove members outside of the open enrollment period.
• If using the school-based coverage, determine how the college requires you to pay for it. If it’s part of the comprehensive tuition fee or considered a “fee that is required for enrollment or attendance,” you may be able to pay for it using a 529 plan.[1] If it’s a separate fee, it most likely will not be considered a qualified 529 expense.
• Ensure that the college’s policy will still cover your child if they’re hurt while visiting home during holidays or review the out-of-network costs for traveling.

Sending your child off to college is often an exciting time, but there’s a lot to consider to ensure you and your child are set up for success. Please don’t hesitate to reach out to your Resource Consulting Group advisor as you prepare for this big transition. We’re here to help!

[1] https://www.savingforcollege.com/article/can-you-use-a-529-plan-to-pay-for-health-insurance

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