U.S. health insurance for international students: what to know
Many international students get confused about shopping for health insurance abroad. Don’t worry! We’re here to help.
The U.S. healthcare system differs from other countries around the world. Let’s break down the basics of student health insurance so international students studying in the U.S. can understand it more easily.
Are international students required to have health insurance?
In the United States, international students on an F or M visa aren’t required by federal law to have health insurance, but many schools require students to have some type of insurance plan. Some schools in the U.S. offer predetermined plans to make the process easier. While it might be convenient, it’s not always the most cost-efficient option or might not meet your health coverage needs.
There are four common insurance requirement categories at U.S. universities. These options vary greatly from one university to the next and are set by your institution:
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- Mandatory: You must take the school’s insurance policy.
- Mandatory with waiver: You must purchase the school’s plan unless you find an alternative that meets specific requirements set by your school.
- Mandatory choice: You must have an insurance plan, but you can choose any plan that meets your school’s requirements.
- Optional: You can choose any plan you qualify for, and your school might not even require you to have a plan.
If your school doesn’t require health insurance for international students, it’s still best to have a plan. Having a policy provides peace of mind so if you become ill or injured, you have coverage.
Understanding the U.S. health insurance system
Unlike other counties, like Australia, Canada and Germany, the United States doesn’t have a universal health care system. Depending on your school’s insurance requirements, you can choose to enroll in your school-sponsored health services plan or opt for a private health insurance plan from a third-party provider.
Although some health service networks are government-owned and operated, many U.S. health facilities and providers are run by private institutions. The health insurance system typically follows a fee-for-service (FFS) system. This means you’ll pay for each medical visit or service you receive.
Without a health insurance plan, you’re 100% responsible for paying health care services out of your own pocket. A health insurance plan shares some of the costs you might encounter from doctor visits, in-patient hospital stays, prescriptions and laboratory tests.
Health insurance terms to know
- Premium: Your insurance premium is the upfront cost for your health insurance plan. You might pay this amount in one lump sum annually, or in monthly or quarterly installments. If enrolled in your school’s health plan, you might pay this cost annually or per session.
- Deductible. This is the minimum amount you must pay out-of-pocket, before your health insurance plan shares the cost of your services. For example, if your deductible is US$500, you’ll need to meet this minimum expense before your plan helps pay for health service charges.
- Co-payment. This is a fixed payment that’s due upfront when services are provided, such as visiting a doctor’s office.
- Co-insurance. Co-insurance is a percentage of a service cost that you’re responsible for. This is in addition to deductibles you must meet. Let’s say your co-insurance is 30% and you’ve already met your US$500 deductible. If you receive a US$100 health bill, you’re responsible for US$30 of co-insurance, and your insurance plan will pay US$70 toward the health service.
- In-network. An in-network provider or facility has a contract with your health insurance company. Your insurance company will typically have a list of “in-network” providers for you to explore.
- Out-of-network. An out-of-network provider or facility isn’t contracted under your health insurance company or plan. Although they might be willing to provide you service, you’ll typically pay more by using an out-of-network provider.
- Claim: You or your health service provider submits a claim to your health insurance company. A claim is a full or partial reimbursement request for the cost of services you received.
Key benefits of an insurance plan
There are a wide array of insurance plans available offering different coverage. First, verify your school’s requirements to understand the type of coverage your plan must include.
Insurance coverage requirements might vary between schools, but here are some key benefits your plan should cover:
- Doctor visits
- Hospitalization
- Prescriptions
- Mental health
- Repatriation
- Emergency medical evacuation
Without good coverage for basic medical needs, you may find yourself in financial trouble in the long run.
It’s also crucial to identify hidden limits. Some insurance companies offer plans with sub-limits that limit the amount they’ll pay for treatment, even if your total plan limit is higher. For example, you might have US$100,000 coverage per hospitalization, but in the fine print, insurance only covers US$500 per day.
Non-essential, but beneficial insurance benefits
If you want or need more than just basic health insurance coverage, there are options. Some companies offer plans for international students that cover organized sports injuries, maternity and preexisting conditions.
Most health insurance policies for international students focus on assisting with accidents and illnesses – not providing preventative treatments. That’s why dental, vision, wellness, congenital disorders, and self-inflicted and sport-related injuries are commonly excluded from student health insurance plans. These exclusions help keep the cost of insurance affordable.
Cost of health insurance for international students
According to a 2022 survey by Hodgkins Beckley & Lyon, a higher education healthcare management firm, undergraduate students at public colleges and universities spent US$226 per month for health insurance. For those attending a private institution, the cost increased to US$295 per month.
Factors that might affect your health insurance costs include whether you enroll in a university-sponsored plan or private plan. Your age, coverage level, and coverage duration can also influence your total health insurance costs in the U.S.
Each insurance provider and plan is different. Make sure the insurance you’re selecting fits not only your budget but also provides good coverage for your medical needs.
5 U.S. health insurance tips for international students
- Start looking for a health insurance plan ASAP. Although it’s not federally required for international students to have a health insurance plan, some schools may require proof of insurance for admission purposes. For this reason, it’s best to double-check with your school about its health coverage requirements and research plans in advance.
- Determine your insurance coverage start date. Most students choose to start their coverage the same month they begin classes. Make sure your insurance begins the day you arrive in the U.S. Some schools have specific date requirements you need to take into account as well.
- Verify your network providers. Receiving services from preferred providers in your insurance plan’s network can help keep your costs low. Out-of-network providers not contracted under your health insurance company result in a higher copayment and coinsurance.
- Keep office visit costs in your monthly budget. Speaking of copayments and coinsurance, include these possible expenses in your monthly budget. Having funds set aside for health-related visits can help you get the care you need if you become ill or injured.
- Leverage on-campus services. If you need additional support, reach out to on-campus resources like your university’s health or wellness centers and international student service office. Also, sign up for university-sponsored informational health workshops, if offered.
Finding health insurance that’s right for you
International students should prioritize health insurance for a worry-free academic journey abroad. Whether required by a school or not, having coverage is essential. When shopping for health insurance plans, focus on understanding plan benefits and matching them to your needs.
Having a choice when it comes to selecting health insurance is valuable. Fortunately, there are a wide array of plans available for foreign students.
MPOWER Financing partners with qualified insurance providers to deliver comprehensive health insurance for you. Start exploring student health insurance plans today.
