What is a Student Health Insurance Plan (SHIP)?
Insurance isn’t just important for businesses—it’s important for everyone. With the increasing cost of healthcare and the chance of getting sick while studying, every student needs health insurance. Here are three important reasons why a Student Health Insurance Plan is essential:
Cover Medical Emergency Costs
If you get sick or injured while studying, medical bills can get really expensive, especially in places like the United States. Remember that a doctor’s visit could cost between $300 and $500. SHIP helps cover these emergency costs. It can cover accidents, dental problems, medical evacuation, or even something more serious like death or disability.
Non-Medical Emergency Coverage
College life doesn’t always go as planned. For international students, you might lose your passport, have delayed or lost baggage, or face a study interruption. A Student Health Insurance Plan can help cover these unexpected costs. It can also help U.S. students with last-minute travel for a family emergency or replace stolen items. It gives you peace of mind by covering these stressful, unexpected expenses.
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Meet University Requirements
The university requires health insurance for two reasons: it’s required by law and ensures students can get medical care without affecting their studies. Insurance helps protect students’ health and their ability to stay on track academically.
Who Needs a SHIP?
SHIP is for everyone. However, they’re mainly designed for college and university students who don’t have access to other plans that work for them. Here’s who can benefit the most from SHIP:
- Students with gaps in health coverage
- Students who are financially independent or struggling
- Students who don’t want to rely on emergency care
- Students without other health insurance
More and more students are getting their Student Health Insurance Plan. In fact, health insurance for college students has been growing. In 2023, the average enrollment increased from 24% to 29%, with the largest rise seen at schools with 20,000 or more students.
A Student Health Insurance Plan is comparably cheaper than most private health insurance options. It is often more affordable than going through a parent’s plan or trying to find an individual insurance plan on the marketplace.
In most cases, college student health insurance is considered minimum essential coverage. This means that SHIP meets the requirements of the Affordable Care Act (ACA). You won’t have to worry about tax penalties for not having coverage.
Moreover, because SHIP is tailored to the needs of students, it often includes additional benefits that other plans don’t. Many universities offer SHIP through partnerships with local hospitals or health providers. This will make it easier for you to access care right on campus. You can usually get medical attention quickly without searching for a provider or worrying about out-of-network costs.
If you’re struggling with mental health issues, SHIP also typically covers counseling, therapy sessions, and mental health hotlines. These are vital resources for managing stress, anxiety, and other mental health challenges. The majority of SHIP plans include access to campus counseling centers.
SHIP benefits and coverage may have certain specific restrictions. Certain standard exclusions include:
- (Pre-existing conditions)
- Self-inflicted injuries
- Hazardous activities or dangerous sports
- STDs like HIV/AIDS
How Does SHIP Work?
Each school has its own process for affordable health insurance for students, but here’s how it generally goes:
Automatic Enrollment
Many universities automatically enroll full-time students in SHIP. The cost is typically added to your tuition and fees, and you’ll be covered under the plan unless you decide to opt out. This is especially common for international students, who often require health insurance that meets specific visa and healthcare standards. Each school will have its own set of health insurance plan requirements for students.
- What to Expect: If you’re automatically enrolled, you’ll receive a notification with details about your coverage, including what’s included and how to use your benefits. Be sure to read through it carefully to understand what’s covered and whether you need to do anything to activate your coverage.
Opting Out
If you already have your own health insurance that meets the school’s requirements, you can opt out of SHIP. You’ll need to provide proof of your coverage, like an insurance card or benefits summary.
- Important: If you don’t opt out on time, you’ll stay enrolled in SHIP, and the cost will be added to your tuition bill.
- How to Waive: The waiver process can vary by school but usually involves submitting some documentation and sometimes answering a few questions about your insurance. Check your school’s health services website for the exact steps and deadline.
New Students
If you’re a new student, you’ll likely need to confirm whether you want to stay enrolled in SHIP or use another insurance plan. Your school will probably have a specific deadline for this decision, which might fall during orientation or before the semester starts, so keep an eye out for that.
You also need to know about the two main types of SHIP: In-Network vs. Out-of-Network Coverage.
In-Network Coverage
- What it is: In-network providers (doctors, hospitals, specialists) have deals with your insurance company to offer services at discounted rates.
- Why it’s cheaper: Because of these agreements, you pay lower deductibles, co-pays, and coinsurance when you see an in-network provider.
- How to find them: Most schools provide a directory or online tools to help you find in-network doctors and hospitals.
Out-of-Network Coverage
- What it is: Out-of-network providers don’t have agreements with your insurance company. If you see one, your insurance won’t cover as much, and you’ll have to pay more.
- Why it’s more expensive: Out-of-network care usually means higher deductibles, co-pays, and coinsurance. In some cases, it might not be covered at all.
- Exceptions: Emergency care can be an exception. Even if you go to an out-of-network hospital in an emergency, SHIP may still cover your treatment, but you’ll likely pay more.
What Does SHIP Cover?
How SHIP works for college students varies from school to school. However, they usually cover a lot of different healthcare services. Here’s a quick breakdown of the main stuff most SHIP plans cover:
Preventive Care
Most student medical insurance coverage helps you stay healthy by covering preventive care, like:
- Yearly check-ups (your regular physical exam)
- Vaccines (like flu shots, etc.)
- Screenings for things like cancer, diabetes, and high blood pressure
- Reproductive health (like birth control counseling or pap smears)
Thanks to the Affordable Care Act, these services are often free if you go to doctors or clinics that are “in-network” (basically, providers that work with your insurance).
Emergency Services
If something serious happens, SHIP plans usually cover emergency care, including:
- Emergency room visits for urgent health problems
- Ambulance rides if you need to be rushed to the hospital
- Hospital stays for emergency treatment (just keep in mind that if you go to a hospital outside your insurance network, it could end up being more expensive)
Emergency care is covered, but if you’re treated out-of-network (e.g., taken to a hospital you didn’t choose), it could cost you more.
Prescription Drugs
Most SHIP plans also cover medications, whether you need them for a short-term illness or for managing a chronic condition. This usually includes:
- Generic drugs, which tend to be cheaper
- Brand-name drugs, which can cost more if they’re not on the insurance’s approved list
- Some plans even cover over-the-counter meds as long as you have a doctor’s prescription
You can fill your prescriptions at campus or local pharmacies, and depending on the drug, you’ll typically pay a co-pay or a portion of the cost.
Mental Health Services
Many SHIP plans include mental health coverage and understanding that school life can be stressful. This might include:
- Therapy and counseling (for stress, anxiety, depression, etc.)
- Psychiatric care, including evaluations and prescriptions
- Substance abuse treatment, if you need support with alcohol or drug issues
Most schools know how important mental health is for students, so SHIP plans often offer both on-campus and off-campus counseling and therapy options.
Wellness Benefits
SHIP plans sometimes offer extra perks to help you stay healthy overall, such as:
- Discounts on and exclusive access to gym memberships on campus
- Smoking cessation programs
- Weight loss or nutrition counseling
These benefits ensures access to the care they need, from preventive treatments to emergency interventions.
Benefits of SHIP for College Students
Let’s dig into some specific reasons why you should consider affordable health insurance options for students:
Affordability
On average, SHIP premiums range from $1,000 to $3,000 per year. This may go higher or lower depending on the university, the specific plan, and whether you live on or off campus. On the other hand, regular health insurance typically comes with higher premiums. You can expect to pay $3,000 to $12,000 per year for individual plans.
Campus Healthcare Access
SHIP makes it easy for you to get healthcare on or near campus. Most plans are set up to work directly with your school’s health center, so you can easily access primary care, specialists, mental health support, and preventive services.
Comprehensive Coverage
Many SHIP plans also cover mental health services, which are essential for college students dealing with stress, anxiety, and depression. These plans often include therapy, counseling, and psychiatric care, and some may even offer support for addiction or chronic conditions.
How to Choose the Right SHIP for You
Choosing the best health insurance for students requires considering several key factors. Here are a few college health insurance tips to choose the best SHIP for your needs:
- Assess Your Coverage Needs: Consider any pre-existing conditions or specific medical needs. Make sure the plan covers hospitalization, outpatient care, surgeries, and preventive services.
- Compare Plans: Individual student plans are a great option, offering tailored coverage. However, group health insurance can be cheaper.
- Network of Hospitals: Ensure the plan has a wide network of hospitals, especially near your campus. This makes it easier to access cashless treatment, where the insurer pays directly.
- Affordability: Pick a plan that fits your budget. Pay attention to premiums, deductibles, and copayments to understand your out-of-pocket costs.
- Claim Process: Look for insurance providers with a simple, fast claims process for smooth support during emergencies.
- Additional Benefits: Check for extra services like mental health care, preventive check-ups, and vaccinations. Some plans also include dental and eye care.
- Review Policy Details: Read the fine print and examine any coverage exclusions or limitations.
- Research Insurer Reputation: Research the insurer’s reputation and read reviews to ensure good customer service and satisfaction.
Frequently Asked Questions About Student Health Insurance Plans
What is SHIP?
It’s health insurance offered by your school, covering things like doctor visits, emergencies, prescriptions, and more.
How does SHIP compare to other plans?
SHIP is often cheaper and covers student-specific needs but may have more limited coverage outside of school. Other plans might offer more flexibility or broader coverage.
How much does SHIP cost?
Costs vary by school, but it’s usually billed per semester or year. You’ll pay premiums, and maybe a deductible and copays.
Is SHIP mandatory?
It depends on your school. Some require it, and others let you waive it if you have your own insurance.
Can I skip SHIP if I have other insurance?
Yes, but your insurance must meet your school’s requirements. You’ll need to submit proof.
How do I enroll in SHIP?
Usually, during registration, either automatically or by applying. Some schools let you opt in or out.
Can I cancel SHIP?
Yes, but only if you’re no longer enrolled or have other insurance. Be mindful of deadlines.
Can I use SHIP outside of school?
Some plans cover you nationwide or internationally, but check your plan details for out-of-network care.