The Pros and Cons of University Student Health Insurance Plans (SHIPs)

What Are SHIPs?

In this article, we’ll break down the pros and cons of a Student Health Insurance Plan (SHIP) to help you understand if it fits you well. We’ll also compare SHIPs with parent health insurance plans so you can see the differences. By the end, you can decide if SHIP is the right choice for your health coverage.

College students often get sick more frequently than others. Angela Haupt from U.S. News and World Report explains that illnesses like colds, upper-respiratory infections, and even serious conditions like mononucleosis and meningitis are common on campuses. This happens because students are in close contact with each other, making it harder to avoid getting sick. The problem is serious, and the effects can be concerning.

In addition to being physically close to each other, students also face high levels of stress, irregular sleep patterns, and poor nutrition, all of which can weaken their immune systems. As a result, many students get sick more often than they would otherwise, and when they do get sick, it can take longer for them to recover. Unfortunately, with the pressures of academics, work, and socializing, prevention and treatment often take a back seat, and students may delay seeking medical help until symptoms worsen.

Choosing the right health insurance plan is important for college students. It affects how easily you can get care, how much you’ll pay, and how quickly you’ll be treated if you’re sick or injured.

This is where the Student Health Insurance Plan comes in.

University student health insurance plans provide a safety net. SHIPs will give you access to affordable healthcare when you need it most. Whether it’s for routine checkups, unexpected illnesses, or mental health support, having a SHIP makes it easier to stay healthy and focused on school without worrying about high medical bills.

Let’s begin exploring the pros and cons of SHIPs!

Related Articles:

• What is a Student Health Insurance Plan (SHIP) and How Does it Work
• How to Enroll in Your University’s Student Health Insurance Plan
• Online Colleges with Student Health Insurance: Low-Cost Options
• Online Colleges with Student Health Insurance: Low-Cost Options
• The Pros and Cons of University Student Health Insurance Plans (SHIPs)
• SHIPs for Graduate and Professional Students: What to Know

Pros of University Student Health Insurance Plans (SHIPs)

Here are a few reasons why you should consider a Student Health Insurance Plan (SHIP):

Affordable Coverage

Student health insurance plans are affordable and made just for college students. They’re priced to fit into a student’s budget, so you can get complete health coverage without spending too much money.

But how are SHIPs cheaper than traditional healthcare plans?

First, SHIP premiums are lower; they don’t typically exceed $3,000 per year. Many universities also subsidize the cost to make it more affordable. The average annual cost of a public university student health insurance plan was $2,924, while private institutions saw higher premiums, averaging $3,874 annually for undergraduates in the 2023-24 plan year.

In contrast, an employer-sponsored or individual health plan can have premiums of up to $6,000 per year.

Secondly, a Student Health Insurance Plan also has lower deductibles, ranging from $250 to $500 only. You only need to pay that amount before insurance covers most of your medical costs. Traditional health plans, however, can have much higher deductibles. A high-deductible health plan (HDHP) could require you to pay $1,500 to $3,000 or more before the plan covers anything.

Convenient Access

SHIPs are designed with college students in mind, making it easy to access campus health services for both regular checkups and urgent care. If you need more specialized treatment, SHIPs sometimes connect you to a network of off-campus providers, allowing you to get the cobverage wherever you are. This convenience helps reduce stress and saves time when you need medical attention.

Moreover, many SHIPs now include telehealth services. This feature allows you to consult with board-certified doctors anytime, day or night, by phone or video. This is especially useful for minor issues like colds, sore throats, or allergies. Telehealth can save you time and money, as consultations are often free or low-cost, and prescriptions can be sent directly to your pharmacy.

Comprehensive Coverage

Most SHIPs offer comprehensive health coverage, including:

• doctor visits
• preventive care
• prescriptions
• emergency care

This means you’ll have access to the healthcare you need, whether it’s a routine checkup or unexpected illness. Plus, SHIPs usually cover 100% of preventive care costs when you use in-network providers, helping you stay healthy and detect potential health issues.

You can also get access to wellness programs and discounts on health and fitness services. These include gym memberships, nutrition counseling, dental and vision care, and even discounts on books or wellness products. These perks will help you stay healthy and make it more affordable to care for your overall well-being.

No Need for Parent Coordination

One of the top student health insurance plan benefits is it doesn’t need parent coordination. SHIPs give you direct control over your health needs. This independence becomes more crucial if you’re living miles away from home.

Additionally, because SHIPs are specifically designed for students, they tend to be flexible in terms of coverage during breaks and travel. This means you won’t lose access to health insurance during long holidays or when studying abroad, which can often be a concern when covered under a parent’s plan.

Cons of University Student Health Insurance Plans (SHIPs)

SHIPs are not perfect; they also have a few limitations that students should consider before enrolling. Here are some of the drawbacks of university health insurance:

Limited Provider Networks

When comparing SHIPs and private insurance, you’ll notice that SHIPs are cheaper but can be more restrictive. SHIPs are typically in-network plans. “In-network” means that a healthcare provider has a contract with your insurance plan to offer services at a discounted rate. Because of this agreement, you pay less out-of-pocket when you see an in-network doctor or use an in-network hospital.

However, cost problems will arise once you go to a provider who doesn’t have a contract with your SHIP. You may face significantly higher costs, or the insurance may not cover any expenses. This can lead to unexpected bills, especially if you need specialized care or urgent treatment outside the network.

SHIPs usually have a smaller network of doctors and hospitals compared to private insurance plans. Sometimes, SHIPs will let you see an out-of-network provider if you get a referral or special approval. But even then, it can be a hassle, and there’s no guarantee that the insurance will cover it.

Seasonal Coverage

While we’ve mentioned that some SHIPs offer flexibility with coverage during breaks or travel, not all of them do. SHIPs with seasonal coverage typically only provide benefits during the school year. This means that you might not be covered during summer, winter, or other school breaks. If you’re staying home during these times or traveling, you could be left without health insurance unless you purchase separate coverage for those periods.

Some SHIPs may offer limited coverage for emergency care while you’re away, but this varies by plan.

Potentially High Out-of-Pocket Costs

SHIPs are relatively affordable upfront and are known for lower deductibles and premiums. However, some students may still find themselves facing high out-of-pocket costs in certain situations.

Suppose you need surgery, long-term treatment, or physical therapy or mental health counseling and similar types of specialized care. In that case, the costs can add up quickly, depending on your plan’s coverage limits and copays.

Some SHIPs may also have high coinsurance rates. This means that even after you’ve paid your deductible, you may still need to pay a percentage of the total cost for certain services.

Limited Out-of-State/International Coverage

Health insurance options for college students offered by universities can be tricky when it comes to coverage outside the area. This is especially true if you’re attending an out-of-state college. You might find that coverage is limited—or even unavailable—if you need to see a doctor or go to a hospital outside of your plan’s network. Furthermore, your SHIP might not cover you overseas, leaving you facing expensive medical bills while traveling.

Comparing SHIPs with Private Insurance and Parent Plans

Here’s a comparison of the key differences, such as network, coverage, and cost of student health insurance plans versus private and parent plans.

Factor	SHIP (Student Health Insurance Plan)	Private Insurance	Parent’s Plan
Cost	Generally low, subsidized by the university	Higher cost, flexible options	Potentially low, under ACA (until 26 years old)
Coverage	Good for basic, routine care and services at the university	More comprehensive, often broader networks	Coverage depends on the parent’s plan (can be nationwide)
Network	Limited to a university health center and nearby providers	Large networks, more flexibility	Depends on parent’s plan (can be nationwide)
Out-of-State Coverage	Limited, may require extra coverage for off-campus care	Excellent nationwide or international networks	May have limitations, especially out-of-network
Convenience	High for on-campus care; limited for out-of-area care	High flexibility, more care options	Convenient for in-state care, less so for out-of-state

A lot of students would prefer to stay on a parent’s plan as it offers several significant advantages, particularly around cost, coverage, and convenience. This plan is especially beneficial for out-of-state students. However, while there are clear benefits, there are also potential drawbacks to consider.

Here’s a rundown of the advantages and disadvantages of staying on a parent’s plan, especially for out-of-state students:

Advantages:

• Can be more affordable than buying separate insurance.
• Often includes a wide range of services.
• Good for out-of-state students needing care away from home.
• No need to enroll in a new plan; continuity of care with existing doctors.

Disadvantages:

• Out-of-state or out-of-network care can be costly.
• May not cover university health center visits.
• Parents may be involved in medical decisions.
• Sensitive health issues might require sharing information with parents.

When comparing university health coverage vs. parent’s plan vs. private plan, several factors, such as cost, coverage, network flexibility, and convenience, must be considered based on your unique needs and circumstances. Each option has advantages and drawbacks, and the best choice depends on where you live, your healthcare needs, and how much flexibility you require.

How to Decide if a SHIP is Right for You

Here are a few guidelines on how to know if affordable college health insurance is for you.

Assess Your Health Needs

You need to check if the plan covers the medical costs you’re likely to have. For instance, if you’re suffering from anxiety or other mental illness, check if the plan offers access to mental health services. Reviewing the coverage is especially important if you need preventative care and prescription meds.

Consider Your Budget

When selecting a health insurance plan, you should also consider the premium amount. It’s important to choose a plan that offers good coverage for your needs but also fits within your budget. Look for a balance between cost and the services you’ll actually use, such as doctor visits, prescriptions, and any special care you might need.

Evaluate Coverage Based on Your Location

Consider your location, especially if you’re an out-of-state student. Some SHIP plans have limited provider networks, so check if your current doctor is covered or research in-network options near your school to avoid extra costs.

Conclusion: Making the Best Choice for Your Health and Finances

Should I choose a SHIP or private insurance? The answer depends. Here are a few key points to remember to ensure you make the best decision.

• If you need comprehensive coverage with broad access to providers in and outside your immediate area, a private health insurance plan or staying on your parent’s plan might be a better option.
• If you’re primarily seeking affordable, reliable coverage for routine care and campus health services, a Student Health Insurance Plan (SHIP) could be the right choice.

Navigating SHIPs can be tricky. It’s important to seek professional guidance before making a decision. You can consult university resources or financial aid offices for additional guidance on SHIPs.