College Health Insurance Plans Taking Advantage of Students

health careWith President Obama’s new health care reform bill, many students across the country are wondering what to do about their health insurance. Should they remain on their parent’s plans? Should they buy their own? Or should they take advantage of the health insurance most of their colleges offer?

Many students wouldn’t guess that it was actually their college endorsed health insurance plans that were taking advantage of them.

While most colleges offer student health insurance packages, some colleges go as so far as to require it. Either included in student tuition or as a required separate entity, colleges and universities are capitalizing on the forced insurance coverage policies.

According to the American College Health Association, 57 percent of colleges required insurance coverage as a stipulation of enrollment in 2008, marking an increase by one-third since 2000.

A number of the plans reportedly also don’t cover unfortunate common student incidents involving student suicide attempts or injuries that occur while under the influence of drugs or alcohol. Additionally, most of the college plans offer high deductibles while in turn providing low benefits.

New York recognizes these alleged problems and the attorney general’s office instituted an investigation. Their findings showed that college endorsed health plans often provide lower benefits than the companies collect in premiums. The investigation also found that companies were teetering state, local and federal regulations and shortchanging their students.

“ Our goal in this investigation [was] to make sure students [were] getting a fair deal and the coverage they need when they buy health insurance through their schools,” the attorney general, Andrew Cuomo, said in a statement.

The health care bill will affect the current campus insurance plans by imposing harsher payout obligations on health care plans, but considering some campuses don’t follow the state regulations it makes one wonder if the companies will comply with the new bill?

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