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?

9 Responses to “College Health Insurance Plans Taking Advantage of Students”

  1. Brenda says:

    It seems to me that lots of people are forced to buy this when they already have health insurance. I didn’t even know that I had purchased it until the cards came in the mail. No one sent me a note on how to opt out. I pay the bills and I did not know that we could opt out. Very irritated. If the insurance card had not been mailed home I would not have even known that we purchased it.

  2. Carol James says:

    Great article,
    It is very important for everyone to have health insurance.If you don’t have insurance and you have to go to hospital, you’ll have to pay over $20,000.That happened to a friend of mine.I know a site that offer the cheapest possible price for health insurance, free quotes and a lot of benefits.

  3. Twin XL says:

    I always make sure to waive my student health insurance at the beginning of every quarter. Such a rip off.

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