10 things you should know when choosing a university sponsored health plan

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Your child is all grown up and about to start college. Among all the hustle and bustle of preparing for their years away, you have come to realize that you need to purchase health insurance. 

Student insurance policies are fairly new in the great machine that is the health insurance industry. They are quickly becoming more prevalent however, as the trend of universities making adequate health insurance an enrollment requirement sustains. Many are faced with the decision to either keep their current plan or, choose to enroll their children in the plan offered by the school.  For some, they may not have an option. Before you sign on the dotted line, make sure you are fully educated in what you are purchasing. The following are the 10 most important things (in no particular order) to keep in mind while choosing a student health plan for your child.

1. Know the plans benefits. Health insurance brochures are often quite lengthy, and for a reason. Make sure you have read and, in fact, understand the entire contents of the plan brochure. How much is covered if your child is not near the university? Are they covered if they're injured while playing a sport for the university's team? Is coverage available for routine physicals and immunizations? It's imperative you know exactly what coverage you will be receiving for each service.
2. What doctors are covered? Many university health plans require their students to use the student clinic on campus to receive any benefit. Some student plans only offer coverage while at school, eliminating coverage sought for services provided while on break at home. Ask the insurance company whether or not your child's current physicians at home are participating with the plan. It is also recommended that you get a general list of participating physicians  near campus, if the benefits allow you to seek care outside the student clinic.
3. Does the plan have any authorization or referral requirements? Clarify whether or not your child will need to choose and notify the insurance of a primary care physician. If so, make sure you know if there are exceptions in which coverage can be obtained without receiving a referral first. If no primary care physician is required, it is wise to also ask if a referral is required from the on campus clinic prior to seeking care with non-school physicians.
4. How much does it cost? This, of course, may be one of the most important factors in your decision. Prices and payment options vary greatly from plan to plan. Find out how much the plan is annually, and if there are any payment plans. Some universities will bill the insurance through tuition. Some insurance plans are billed directly to the health insurance carrier. You may also run into some companies that only accept the premium in one lump sum prior to the plan's start date.
5. What are the plan exclusions? Many insurance plans have exclusions. Often student health plans are considered "accident and sickness plans". This means that the policy excludes or provides very limited routine and preventative care such as routine physicals, or routine vision. If your child has a current or ongoing medical condition, make sure it is not a benefit exclusion.
6. Are there any pre-existing condition limitations? Will your child's ongoing condition be covered? Most student plans will waive the coverage limitation if you can provide proof you had prior coverage without any gaps. Some student plans will not apply an outside health plan to waive the limitations. If they do waive limitations with prior insurance, ask the length of time you need to provide proof of coverage for. If, in the end, coverage limitations for a pre-existing condition are going to be placed, familiarize yourself with what the limitations are.
7. What are the plan maximums? Some student plans are extremely basic and therefore the aggregate benefit maximum may be very low. Make sure you feel the limitations are reasonable according to your child's health status and history.
8. If your child is no longer a student is there an option to extend coverage? Often times college students find themselves in limbo between the end of their college years and the start of their career years. During this time insurance coverage may difficult to find. Be sure to ask whether or not their is an option to extend the policy once your child is no longer a student. Student health insurance is not required to provide COBRA therefore,  it is not always possible to continue coverage.
9. What are the deadlines? With any insurance, there are deadlines you need to keep in mind when enrolling and paying for the plan. Be mindful of the enrollment date as well as the payment dates for any premium bills or installments. If you miss these, you may not be able to enroll in the insurance for the period you'd like to be covered for.
10. Who is the health insurance carrier? It is extremely important that you have the name of the insurance company providing your child's insurance while at school. Write the name of the company and their contact information where it can be easily referenced. This way if you have questions or concerns, you have an easy channel for obtaining answers.

Health insurance costs have been rising for several years now. Educating yourself appropriately in the  insurance plan you are purchasing will help you to avoid what may be, a very costly mistake.