Department of Financial Services, Consumer eViews Volume 7 Number 34
August 20, 2010
Sean
Shaw, Insurance Consumer Advocate
A new school year is rapidly approaching. College brings many new adventures and
life lessons to students and their families.
Though
many young people feel as though they are invincible, the reality is that young
people need health insurance, too. In case of an unexpected accident resulting
in hospitalization, students should be aware of how to avoid hefty health care
bills by obtaining health insurance. The Office of the Insurance Consumer
Advocate would like to encourage students and their families to include health
insurance coverage as a part of their scholastic expenses for the upcoming
school year.
With the enactment of the Patient Protection and Affordable Care Act, health insurance has become more available to young people. Students and parents should be aware of the health care options that are available with a multitude of choices for college students. This article will serve as a guide to help families navigate the process of obtaining health insurance for college students.
Beginning September 23, 2010, young adults under the age of 26 can remain on their parent’s health insurance plan. This applies as long as a job-based health insurance plan is not available to the young adult. Students currently on a parent’s policy should consider remaining on the policy to ensure familiarity with coverage but should be aware of out-of-area expenses. Consumers should also note beginning in 2014, unemployed young adults with a limited income of up to $15,000 a year may be eligible for Medicaid.
Students unable to obtain health insurance through a parent’s policy should consider obtaining a health insurance policy from their educational institution. Many colleges and universities offer policies with annual premiums ranging from under $100 for temporary insurance to a high of $2,500 for standard coverage and many ranges in between.
In the event a student is unable to remain on their parent’s health insurance plan or obtain health insurance from their college or university, students can purchase an individual insurance policy. Consumers should be aware that although individual policies are available, they are typically more expensive than plans offered through colleges and universities. Therefore, students and families should explore all options prior to purchasing an individual policy.
Consumers should contact their insurer to obtain any additional information regarding coverage for a college student or young adult.
Consumers that have any additional questions regarding health insurance coverage for college students should contact the Division of Consumer Services within the Department of Financial Services on-line at http://www.myfloridacfo.com/Consumers/ or by phone at 1-877-MY-FL-CFO (1-877-693-5236), toll-free in Florida, and (850) 413-3089 from out of state.
The Insurance Consumer Advocate is appointed by Florida Chief Financial Officer Alex Sink and is committed to finding solutions to insurance issues facing Floridians, calling attention to questionable insurance practices, promoting a viable insurance market responsive to the needs of Florida’s diverse population and assuring that rates are fair and justified.