Saturday, May 10th, 2008
College Health Care Plans: Yes or No?
Parents’ health insurance plans unfortunately doesn’t always cover their college student children. In fact, there’s 5 million who aren’t covered at all. In this case, colleges usually assist the parents by implementing their own insurance for the kids. But this doesn’t mean it’s all ok now. Businessweek.com advises that parents should read the details before signing on the dotted line:
- Maximum Benefits vs. Deductibles. Most college plans have a very low benefits ceiling—often $30,000 or less. This won’t cover large medical issues such as cancer or injuries suffered in a car accident.
- Interior Caps. Some college insurance plans are structured so it is nearly impossible to take advantage of all the benefits.
- Prescription Drugs. Most plans put a cap on the coverage for prescription drugs. These caps, however, can vary from $400 to $5,000-plus.
- Exclusions. At the bottom of most insurance plans is a list of exclusions—medical issues or procedures that aren’t covered.
- Loss Ratios. Colleges seldom disclose a key statistic for judging their plans, known as a “loss ratio” or “benefits ratio.”
Please leave a Comment