How to Compare SHIPs to Private Health Insurance Plans

Why Compare SHIPs and Private Health Insurance?

In this article, we will compare SHIPs and private health insurance. We aim to help you make an informed choice when picking the right coverage.

The United States doesn’t offer universal health coverage. If you don’t have health insurance, you’ll have to pay for medical expenses, which can be costly. A full body check-up alone in the US costs between $200 and $500, depending on where you go and what tests are included.

Colleges and universities require students to get health insurance. You can either get a Student Health Insurance Plan or choose private health insurance. Each option can be a great choice, depending on your needs.

To ensure that you pick the best insurance, you need to compare SHIPs and private health insurance comprehensively. You need to take into account coverage, costs, and your personal needs.

What is a Student Health Insurance Plan (SHIP)?

A Student Health Insurance Plan (SHIP) is a health insurance policy colleges and universities offer students. If you’re a full-time student, you can enroll in the SHIP. For students who are part-time or enrolled in online programs, eligibility may be more limited.

The plans are designed to meet the health needs of students. They are especially meant for those who are away from home and may not be covered by their parents’ insurance.

SHIPs are typically more affordable than many private health insurance plans. They may cover services that students commonly need while at school, like:

• mental health support
• wellness service
• treatment for illnesses common among college-aged individuals

Many universities have on-campus health centers that work directly with SHIPs, meaning students can get care quickly and affordably without needing to go off-campus. These centers often offer routine health services, basic testing, and urgent care.

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What is Private Health Insurance?

Private companies or organizations provide private health insurance. You can get it through employers, government marketplaces, or by purchasing it individually.

Private insurance is often more expensive. The premium plans of these insurances can vary significantly based on:

• the plan type
• your age
• location
• personal health history

They generally provide a wider range of coverage. They can be the best option if you’re looking for specialized care or want to have a larger network of providers. Coverage might include everything from preventive care to emergency visits, mental health services, and even alternative treatments.

Premiums and Cost Comparisons: SHIPs vs. Private Insurance

With tuition rates rising faster than wages, you need to be very careful if you want to avoid graduating with piling student debts and loans. When it comes to costs between student health insurance plan vs. private insurance, SHIP is often the more affordable option for most students.

Typically, SHIP premiums are lower than what you would find in a private plan. For one, SHIPs benefit from being group insurance plans for students. Since these plans are for large groups, universities can offer them at a lower rate.

Considered the most affordable health insurance for college students, SHIP premiums usually range between $1,500 to $4,000 annually. The cost will depend on the university and whether you’re on a parent’s plan or not.

SHIPs are also sometimes partnered with financial aid/discounts. This can make them even more affordable for students who demonstrate financial need.

Private insurance, on the other hand, can cost as much as $5,000 to $7,000 or more per year. They also don’t offer any financial aid or discounts. Premiums depend on factors like age, location, and plan details.

• HMO plans: These are cheaper with lower premiums but require you to pick a primary care physician (PCP) for referrals. You must also use in-network providers, which limits your options.
• PPO plans: These cost more but offer more flexibility. You don’t need a referral to see specialists, and you can visit out-of-network providers, though at a higher cost.

Key point: SHIP premiums vs. private insurance costs significantly differ. SHIPs are more affordable as they are for large groups. Meanwhile, private insurance is more expensive but can be flexible and customizable based on individual needs.

Coverage Limits and Benefits: What to Expect with Each Option

The coverage limits and benefits can really make a difference when choosing between the two.

SHIP Coverage Limits

Most SHIPs cover a lot of basic services. They often include:

• Preventive Care. Yearly check-ups, vaccines (e.g., flu shots), cancer screenings, and reproductive health services. These are often free if you see in-network providers.
• Emergency Services. Coverage for emergency room visits, ambulance rides, and hospital stays for urgent issues.
• Prescription Drugs. Most SHIPs cover both generic and brand-name medications, with some plans covering over-the-counter drugs with a prescription. You’ll typically pay a co-pay at the pharmacy.
• Mental Health Services. SHIPs often cover therapy, counseling, and psychiatric care, which are usually available on campus. Some SHIPs may also offer mental health services off-campus, but these options are often more limited, especially if the college is rural.

However, SHIPs can be limited when it comes to out-of-network care. If you see a provider who isn’t part of the network, you could end up paying more out-of-pocket. But overall, SHIPs are pretty good at covering the basics without breaking the bank.

Private Insurance Coverage Limits

Private insurance plans, especially those from the Marketplace or your job, usually offer more flexibility in terms of coverage limits. These plans typically cover more specialized services. They also offer broader networks of providers.

Here’s a breakdown of what private insurance typically covers:

• Specialized Services. One of the biggest advantages of private insurance is the coverage of specialized services, such as chiropractic care, acupuncture, and fertility treatments. Private insurance may offer more comprehensive options and a broader network of specialists if you need more specialized medical care.
• Preventive Care. Just like SHIPs, private insurance plans usually cover preventive services at no cost, including annual check-ups, immunizations, cancer screenings, and family planning services. However, coverage can vary by plan, so it’s important to check specific details.
• Prescription Drugs. Many private insurance plans have a more comprehensive prescription drug benefit than SHIPs, with larger formularies. Private plans might offer better coverage for brand-name medications, specialty drugs, and a wider range of over-the-counter medications.

Mental Health Services

Private insurance often provides robust mental health coverage, including inpatient psychiatric care, therapy sessions, counseling, and substance use treatment. Some plans have better access to specialists and offer a wider selection of mental health providers compared to SHIPs.

In some private insurance plans, you’ll have access to additional perks like health savings accounts (HSAs) or flexible spending accounts (FSAs). These perks allow you to set aside pre-tax money for medical expenses, which can provide financial relief if you have high healthcare costs.

In general, private insurance can be the best college student health insurance options. They offer more coverage options and higher limits, but it often comes with higher premiums and sometimes more complicated rules.

Key Point: Consider your personal needs when comparing SHIP vs. private insurance for college students. If you’re someone with critical conditions, it might be worth looking into private insurance for more specialized care options. On the other hand, if you’re generally healthy or only need basic care, SHIPs can be a great option.

Out-of-Network Care and Flexibility

You also need to know about out-of-network care and flexibility to compare SHIPs and private health insurance.

One of the downsides of SHIPs is that they are often tied to the university’s network of healthcare providers. If you’re attending school in a specific location and using the health services offered on campus, that’s fine.

However, SHIPs may limit coverage outside the university’s network. It can ultimately lead to higher out-of-pocket costs. In some cases, you may need a referral to see a specialist, and getting care outside the network might be expensive and complicated.

If you’re someone who plans to move around or travel frequently, this could be a significant issue. Some SHIPs do offer coverage for emergencies, but routine care or planned treatments may not be covered.

In contrast, private insurance plans tend to offer the flexibility of seeing out-of-network providers. Most private plans, especially PPO plans, allow you to see any healthcare provider you choose.

For students who anticipate moving frequently or taking a gap year abroad, private insurance is often the better option. This type of health plan offers broader out-of-network care for students. That flexibility can be invaluable if your plans change mid-year.

Additional Benefits to Consider: Mental Health, Dental, and Vision Coverage

Here are additional SHIP coverage limits vs. private insurance coverage details:

Mental Health Coverage

• SHIPs: As mentioned, SHIPs often cover therapy, counseling, and psychiatric care, with services typically available on campus. However, off-campus availability can be limited.
• Private Insurance: Private insurance plans often provide more robust mental health coverage. These plans usually have a wider range of mental health professionals and facilities, with more flexibility to seek care both in-network and out-of-network.

Dental Coverage

• SHIPs: Many SHIPs don’t include dental coverage, or they only cover basic services like exams and cleanings. More expensive treatments (fillings, root canals) may not be covered, or you’ll have to pay extra.
• Private Insurance: Private plans often offer separate dental coverage or include it in the plan. They cover basic care (exams, cleanings), major treatments (fillings, crowns), and sometimes braces.

Vision Coverage

• SHIPs: SHIPs usually provide basic vision coverage. This can include eye exams and discounts on glasses, but anything beyond that (like contacts) may require extra out-of-pocket costs.
• Private Insurance: Private insurance often includes vision coverage, either as part of the health plan or as an add-on. It covers eye exams, glasses, and contacts, with more flexibility and better options for eyewear.

How to Evaluate and Choose the Best Option for You

Deciding between health insurance for college affordability and flexibility can be quite tricky. Here’s a quick but thorough guideline on how to determine the best health insurance plan for you:

Health Needs

• SHIP: This is great if you’re healthy or just need basic care, such as check-ups, flu shots, and on-campus services.
• Private Insurance: Better if you have ongoing health conditions or need specialized care like chiropractic services or therapy.

Cost

• SHIP: Cheaper (around $1,500-$4,000 per year) and sometimes offered with financial aid.
• Private Insurance: Costs more ($5,000-$7,000+) but offers more flexibility and broader coverage.

Coverage

• SHIP: Covers basic things like emergency care, prescriptions, and mental health services but can be limited outside campus.
• Private Insurance: Offers more specialized services and broader coverage, including out-of-network providers.

Flexibility

• SHIP: Limited to campus or nearby providers; great if you’re staying on campus.
• Private Insurance: More flexible, especially if you travel or want access to a wider range of doctors.

Extras

• SHIP: Might not cover dental/vision or only offer basic coverage.
• Private Insurance: Often includes more comprehensive dental and vision plans.

Conclusion: Making the Right Health Insurance Choice as a Student

Choosing the best health insurance for students depends on several factors, such as health needs, budget, and lifestyle. While there are many things to consider as you Compare SHIPs and private health insurance, remember these key points:

• SHIPs are more affordable and ideal for students needing basic, on-campus healthcare. They are also often bundled with financial aid. However, they might not be great if you need specialized care.
• Private health insurance offers broader coverage, flexibility, and access to specialized care. However, they’re much more expensive than SHIPs.

You should contact your university’s health services, student insurance office, or financial aid office for guidance on SHIPs and private insurance options. Additionally, online resources and speaking with peers or insurance brokers can help clarify coverage details and costs.