Health Insurance: A lifeline for Indian students on US campuses

Are you one of the many Indian students aspiring to study in the US or a parent planning to send your child there? 

Healthcare in the US is notoriously expensive, with even a simple doctor’s visit costing hundreds of dollars.

Without health insurance, students could find themselves in a monetary crisis if they face serious health issues or emergencies.

Insurance can help cover costs for doctor visits, hospital stays, prescriptions, and surgeries, which otherwise could become a heavy financial burden.

Benefits of health insurance for Indian students:

Access to quality healthcare

With a valid health insurance policy, international students can access a wide network of doctors, specialists, and hospitals.

Many university-provided plans offer comprehensive coverage tailored to the needs of international students, so that they don’t have to face the hassle of navigating a foreign healthcare system.

Compliance with university requirements

Most US universities mandate that international students have health insurance to ensure they are covered during their stay.

Often, the insurance cost is included in tuition fees, and failure to have adequate coverage can affect a student’s ability to enrol in classes or meet visa requirements.

Mental health and preventive care

Health insurance covers emergency medical expenses, mental health services and preventive care.

As these students are away from home for extended periods, they experience stress and anxiety, and in such cases access to mental health services becomes crucial.

University-sponsored health plans

Almost all the US universities offer health insurance plans that are tailored to suit the needs of the international students.

These plans are often mandatory, and the cost is included in tuition and other fees. For example, universities like Harvard, Stanford, and Columbia provide comprehensive health plans tailored to international students' needs.

Financial aid or scholarships can take are of a part of these costs, especially for those with financial need.

Private health insurance

Private insurance options are also available for students who wish to opt out of the university-sponsored plans.

However, it’s mandatary that they meet the health coverage required by the university and the US visa regulations.

Such health plans must also provide enough coverage for emergency hospitalisations and doctor visits.

State-mandated insurance plans

In some states, international students must buy health insurance policies that follow the guidelines that are in force.

While these plans give comprehensive coverage, they tend to be more expensive.

States like California offer such programs, where universities like UC Berkeley mandate enrolment in the UC SHIP plan unless students have comparable coverage.

Costs of health insurance

The cost of health insurance for international students depends on the type of coverage, the university and the state where it is located.

The average expense for a student would be between USD 500 and USD 2,500 per year.

Cost breakdown

Universities like the University of Michigan and Duke University offer comprehensive health insurance, often included in the overall student health services fee. 

In states with specific health insurance guidelines, these plans usually offer broader coverage and are often mandatory.

However, financial aid may help reduce the cost for eligible students.

Factors such as the student’s age, health history, and the cost of living in the university’s location can also affect the cost. For instance, students attending universities in high-cost areas like New York or California may face higher premiums.

Making health insurance claims 

Filing a claim for medical expenses in the US can be a relatively straightforward process, especially for students enrolled in university-sponsored plans.  

Understand your plan

Before seeking treatment, it’s important to understand what is covered by the insurance plan.

Most plans cover routine visits, hospital stays, and prescriptions, but there may be exceptions.

Always visit an in-network provider 

University-provided insurance plans usually have a network of doctors and hospitals.

Visiting a provider within this network will minimise out-of-pocket expenses. For out-of-network providers, the student might have to pay more.

Submitting a claim

For most routine visits or treatments, the provider will directly bill the insurance company.

For services that require out-of-pocket payments, the student can file a claim by sending the receipts to the insurance company along with a claim form.

Usually, the universities will have a dedicated officer to help students go about their claims process.

Keeping track of expenses

International students must keep a record of all medical treatments and expenses, in case, they need to file a claim later.

Claims can be made for visit to the doctor, hospitalisation and emergency care.

Indian health insurance plans

Some of the Indian players provide health insurance for Indian students studying abroad. However, its advisable to check with the university before taking admission whether the policy is valid.

Health insurance plans for students studying abroad

“There are some universities, some places in the US, that have mandates in terms of what (kind of insurance) the student should take,” Rahul Prasad, the Chief Executive of HDFC International Life told a business news website last year after the insurer set up at the International Financial Services Centre at GIFT City, Gandhinagar.

“They also allow students to buy their own insurance policies, provided they meet the requirements listed by the university management,” Rahul Prasad added.