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.
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:
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.
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.
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:
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.
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.
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.
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.
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