There are many benefits to studying in the United States, but life as an international student can present a few distinct challenges. One of the biggest complications? Navigating the United States healthcare system, which looks a lot different than health services in other countries. This can be frustrating, but there is no avoiding international student health insurance as this is an outright requirement for most universities and even most visas.
Thankfully, you do not need to struggle with healthcare decision-making on your own. Many resources and services promise to streamline this process and ensure that you are properly covered. Understanding the basics of U.S. healthcare can also help. Brush up on a few details, and you will feel more confident about seeking health services in the U.S. We have outlined all the essentials below.
Understanding Health Insurance for International Students in the U.S.
Health insurance provides valuable protection and peace of mind for international students. This ensures that in the event of an illness or injury, international students can access and pay for quality care. Insurance plans must be compliant with federal regulations and must also meet university requirements. In many ways, these plans look a lot like the insurance held by long-term U.S. residents and citizens.
The Importance of Health Insurance for Study Abroad Students
Unfortunately, medical emergencies are always a possibility, even for seemingly healthy students. When disaster strikes, health insurance can make a world of difference, safeguarding students from exorbitant medical bills. This produces powerful peace of mind and can help international students focus more on their studies, rather than worrying about health services and their exorbitant costs.
Key Health Insurance Terms Explained
International students are often unfamiliar with complex terms that shape the U.S. healthcare system. These concepts can determine whether plans provide sufficient coverage for students or how much they truly cost once implemented:
- Premium. This is the amount you pay to ensure that you are covered by health insurance. Unfortunately, this premium does not count toward the deductible. While most US health plans maintain monthly premiums, international student plans may provide the opportunity to pay a single, annual premium.
- Deductible. As the amount paid for health care services before insurance coverage kicks in, the deductible can vary between plans. Typically, a higher premium is accompanied by a lower deductible.
- Allowed amount. Also known as the negotiated rate, the allowed amount represents the maximum a given plan will pay for a particular healthcare service.
- Co-pay. Once the deductible has been reached, health services may call for copayments, which are fixed amounts to be paid for care. For example, a physician visit with an allowable cost of $100 may require a patient co-pay of $20 after the deductible is met. This typically is required for routine checkups or prescribed medications.
- Coinsurance. As another form of cost-sharing, coinsurance involves a specific percentage paid by the patient for health services after the deductible has been met. This can vary between plans, but the following represents a common approach: coinsurance of 20 percent means the patient covers 20 percent of the service while insurance covers the other 80 percent. This is often required for specialized treatments or hospital visits.
- In and out-of-network. Health plans maintain contracts with specific providers to make services available at negotiated (and typically, discounted) rates. Out-of-network providers lack contracts with relevant health insurance companies. In most cases, in-network care will be far more cost-effective from the patient’s perspective.
Choosing Your International Student Health Insurance Plan
There are many ways to secure health insurance coverage as an international student. The current status quo is to obtain coverage through a student-specific university plan. In some situations, this may be the only valid choice for international students.
In other cases, it is possible to secure private insurance from outside providers or to obtain an insurance plan through a public marketplace. These plans can vary dramatically in terms of cost and coverage. With that said, it is crucial to examine insurance requirements and plan details before making a final decision.
Factors to Consider When Selecting a Plan
There are many ways to approach health insurance coverage. A lot depends on your current health status, finances, and tolerance for risk. Often, international students opt for lower-premium plans, with the assumption that they will not need a lot of health services during their time in the U.S. However, if you have the funds for premiums and want greater peace of mind, a plan with a lower deductible and lower coinsurance may be preferable.
Coverage Essentials for International Students
As you navigate various health insurance plans, be mindful of the absolute minimum level of coverage. We will provide a deeper dive into visa requirements below, but from a personal standpoint, coverage is not sufficient unless routine and preventative care is covered, along with potential hospitalizations or other forms of emergency care.
The ideal plan will also be transparent and easy to understand, with reasonable deductibles and co-pays that students can realistically afford. Student plans should always comply with the Affordable Care Act (ACA).
Navigating Health Insurance Requirements for International Students
Health insurance is not always a matter of preference. Many college programs maintain strict requirements for how students are covered. Beyond this, insurance decisions may be shaped by visa requirements, as explained below:
Visa Requirements Related to Health Insurance
If you have J-1 visa status, you will need to maintain insurance coverage for the full duration of your J-1 student program. Fail to maintain insurance, and you could be found in violation of your legal status. Other requirements are outlined below:
- $100,000 coverage for accidents or illnesses
- $500 maximum deductibles for accidents or illnesses
- $50,000 for potential medical evacuation to the student’s home country
- $25,000 for repatriation of remains (costs associated with returning a deceased individual’s body home)
University and College Health Insurance Policies
Many universities and colleges mandate that international students secure health insurance prior to studying in the U.S. That said, some institutions allow students to seek insurance from private providers. Often, students find it easier and less stressful to select university-provided health plans.
Common Health Insurance Plans for International Students
While employer-based health insurance covers over 60 percent of the U.S. population, this may not be available to international students. Thankfully, there are many other ways to secure coverage. These are not limited to college and university plans. Some students seek insurance through health insurance marketplaces or plans provided at the state level. Options worth exploring include:
Affordable Care Act (ACA) Compliance and International Students
The Affordable Care Act (ACA) has a huge impact on health insurance for international students. School-sponsored plans must be compliant with ACA. Additionally, the ACA provides access to an insurance marketplace, through which a variety of insurance plans can be purchased. These plans fall under various categories known as tiers, which make it easier for students to compare the potential cost of coverage.
The ACA is also important because it drives standardized coverage for essential health benefits (EHBs), along with strict requirements for covering the cost of preventative services. Also worth noting is that students cannot be denied coverage or charged high premiums based on pre-existing conditions.
Short-Term vs. Long-Term Health Insurance Plans
Some health insurance plans provide coverage for limited periods, typically just one or two months. This can be a viable option for international students who enroll in short-term programs or need to extend their coverage without getting enrolled for another year.
In the U.S., the concept of long-term health insurance references a typical one-year cycle, which is provided by both employers and most health insurance marketplace plans. This coverage can be renewed during open enrollment periods. During open enrollment, it is also possible to make changes to existing plans.
Benefits of Having International Student Health Insurance
Attaining quality health insurance coverage is essential for anyone studying in the U.S. Without it, you risk compromising your health, visa status, and finances. Keep these priorities in mind as you navigate student health insurance:
Access to Quality Healthcare
Your health and well-being can play a huge role in driving your success as a student. Research links student health with academic performance and even professional outcomes but maintaining optimal health will be difficult if financial barriers make you reluctant to seek treatments or preventative care.
Peace of Mind While Studying Abroad
Studying abroad can be exciting and rewarding, but there are many risks and challenges to consider. As an international student, you will need to navigate coursework, living arrangements, and transportation, but insurance coverage can remove at least one burden or source of stress.
Peace of mind is important, especially when it comes to health and well-being. Plus, it is worth the investment to know that you will be covered in the worst-case scenario.
How to Use Your International Student Health Insurance
Getting insured is only the first step; next, you need to feel confident that should you need health services, your insurance will safeguard your finances. This means learning to navigate both your health insurance plan and the healthcare systems or providers near your college or university. Split-second decisions can have huge repercussions, so make sure you are well-informed.
Finding Healthcare Providers That Accept Your Insurance
Unfortunately, not all healthcare providers will accept your insurance. Choose the wrong clinic, and you could emerge with a shockingly high bill. Your insurance plan or healthcare provider may offer resources or lists of in-network options to help you determine where your insurance is accepted. When in doubt, call your doctor’s office or other facilities to confirm that you have the necessary coverage.
What To Do in an Emergency
A proactive approach will limit the potential for unwelcome surprises after you receive emergency care. Get to know your insurance plan and learn which clinics, hospitals, and other facilities are considered in-network. When in doubt, ask university health services offices for insight.
Keep phone numbers and addresses for in-network locations readily available. Consider printing them on a card or listing them in the contacts section of your phone.
Managing Health Insurance Costs as an International Student
While international student health insurance can prevent financial emergencies, the cost of getting covered can still be considerable. Still, it is far preferable to handle modest premiums or co-pays over time, rather than facing thousands or tens of thousands in medical bills after an emergency. Follow these suggestions to keep your health insurance costs manageable:
Budgeting for Health Insurance Premiums
Once you have selected a plan that meets your personal needs along with college or visa requirements, you can build premiums into your budget. If you have selected a plan with lower premiums but higher deductibles, consider setting aside some additional funds each month in case you face higher-than-expected co-pays in the future.
Understanding Deductibles and Out-of-Pocket Maximums
Be prepared to dedicate a significant sum to your deductible before your insurance actually kicks in. This will need to be factored into your overarching budget as an international student. If you need specialized care, you will almost certainly pay a significant amount out-of-pocket.
For emergency care, you will want to be aware of out-of-pocket maximums. This represents the most you will ever have to pay toward your health insurance plan in a given year (not including premiums). Once you reach the out-of-pocket maximum, 100 percent of your health care expenses, like deductibles and co-pays, should be covered as long as you remain in-network.
Seek International Student Support From Post University
As you plan an exciting academic journey, be mindful of health insurance for international students. At Post University, we are happy to guide students from all around the world through these and other practical concerns. We even offer a Student Health Insurance Plan (SHIP), which is insured by Wellfleet, administered by University Health Plans, and provides access to Cigna’s National Network of PPO Providers.
We are committed to supporting and empowering international students and improving the health and well-being of all students at Post. Staffed by a skilled physician and registered nurse, our Health Services office provides basic care, wellness information, and assistance with finding additional healthcare services or facilities. Reach out today to learn more.
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