5 FAQs about Health Insurance for International Students
With more people traveling to the United States to study than ever before, health insurance for international students is a hot topic. Many people have questions about coverage for international students as they reside and study abroad—students themselves, their families, school administrators, faculty, and coaches all share the same interest in keeping students healthy, happy, and productive during their time studying in the US. Here are a few of the common questions that crop up when it comes to international students’ health insurance.
5. Do International Students Need Health Insurance?
Yes! It’s important that health insurance for international students is provided at their institution of choice. Students considering any institution should be asking whether there is health insurance for them and if there is a separate plan for those traveling from abroad.
Schools that invite international students from far and wide to come learn at their campuses should consider the benefits of mandating health insurance for international students. This protects both the school and the students. Mandating a special group insurance plan that is built to cover international students specifically ensures no student falls through the cracks, and everyone is equally protected. It’s likely that an undergraduate student will get sick and/or have an accident at least once during his or her two or four year course of study, so it is important for them to have insurance.
The US system is also foreign to many students from other countries (no pun intended), and students may not be prepared to deal with high billing fees that are typical in the American healthcare system. Insurance protects students against these unexpected, out-of-pocket costs. It also protects schools from medical providers seeking payment from students who, without insurance, cannot afford to pay their bills.
4. Why Do International Students Need a Separate Plan?
At first glance, plenty of school administrators and even international students themselves might think they don’t require a separate or special plan for their health needs when compared to a domestic US college student. Managing multiple health plans is a hassle, so if a school already has a plan in place for domestic students, some might think it makes sense to simply lump all students together.
However, students traveling from abroad to study in the US have different needs than traditional domestic students. US students have a better understanding of the healthcare system, and likely already have access to quality health insurance from other sources. For example, US students can be covered on their parent’s plan or through the healthcare.gov exchange available to US residents. International students, on the other hand, don’t know how to navigate the US insurance marketplace and they require access to unique medical services like emergency evacuation and repatriation services. It’s these special considerations that set international students apart from domestic students—and their health insurance should be sourced and provided separately too.
3. What about the Affordable Care Act (ACA) or “ObamaCare”?
International students on 5-year visas currently receive an exemption from the ACA’s Individual Mandate, which means they are not obligated to purchase expensive coverage that complies with the ACA. Compliant ACA coverage is typically expensive and features high deductibles and high out-of-pocket costs, which just doesn’t make sense for international students.
A specialized group plan for international students will often provide the student with first dollar protection at 100% with no deductible, or a low deductible, at a cost well below what an ACA plan would cost. And since the majority of international students are exempt from complying with the ACA individual mandate, they shouldn’t be forced to purchase expensive ACA coverage.
2. What Should a Plan for International Students Include?
Some schools will have a long list of requirements for health insurance plans intended for international students. Others won’t have many requirements at all. In some cases, insurance requirements will be dictated by the type of visa. Individual institution and visa types notwithstanding, there are a few things you should look for in any health insurance plan for international students. Coverage should always include repatriation services, emergency evacuation, and both inpatient and out-patient care.
Good insurance plans also come with support services, for both school administrators and students. Support for students can include language assistance and help navigating the American health care system, which can be daunting for students from other countries. Plans may also include support for administrators in effectively communicating how the plan’s coverage works and how to use the benefits.
1. What Won’t Be Covered?
There are always some exceptions, and even a custom health insurance plan for international students will have several key exclusions to be aware of. Keep in mind that insurance in the US is not intended to provide unlimited coverage for every possible health issue–if that insurance existed in the US, nobody would be able to afford it! Instead, international health insurance plans are designed to cover care that students most often need, while minimizing the costs to the student, both for the insurance premium the student pays to secure the health insurance, as well as any out-of-pocket costs that arise when care is sought.
Typical exclusions include pre-existing conditions or medical care required after committing a crime. Other common exclusions may include alcohol and drug abuse, self-inflicted injuries, or cosmetic surgery. Students should always be aware of the restrictions on their coverage. Good plans will provide additional support for school administrators to help educate students about their coverage.
