University of Central Florida student health insurance

TA | October 13, 2008

UCF student health insurance


Summary - Most U.S. colleges and universities including the University of Central Florida require students to have health insurance as a condition of enrollment. A student can provide their own private health insurance through a parent's coverage or purchased online at MedSave.com or enroll in a group insurance plan offered through the University by Chickering Benefits. Students and their parents are frequently motivated to find alternative coverage that may offer better protection at a lower price. It is possible for most healthy students to find lower price protection with stronger catastrophic coverage with a wider range of providers on a national basis using the plans listed on a state-by-state basis at MedSave.com. Since each student's situation is different, it pays to take a few minutes to compare the available options.

On-campus health services - All UCF students have access to the UCF Health Services in Building 127 located on Apollo Circle on main campus. Enrollment in the on-campus health service is mandatory and the fee for this service is included in all students' tuition bills regardless of the student's other health insurance. UCF Health Services is intended to to be the first source of primary care, provides OB/GYN and STD screenings and fills students' prescriptions but is not intended to provide extensive medical service.

UCF Plan vs. Private Insurance - The University of Central Florida plan is underwritten by Aetna Insurance but the claims administration is handled by Chickering Claims Administration Inc., an affiliate of Chickering Benefits Planning Insurance Agency Inc. in Boston Massachusetts. The cost of the basic coverage is about $1,236 per year for the first $250,000 of coverage and about $114 for supplemental coverage to raise the benefits to $1,000,000. The out-of-pocket maximum is $2,000 for network providers and $4,000 for non-network providers. Aetna is a managed care company with extensive benefits including maternity, prescription drugs, mental health and the potential to cover pre-existing medical conditions when the student maintained continuous prior medical coverage.

Universities generally prefer that students enroll in the school health insurance because it is easier to administer health care while students are on campus. Parents tend to be uncomfortable with university-based health plans because these tend to provide less protection for catastrophic events and limit access or coverage to top-quality specialists outside of the plan's network. Presumably, in the event of a major medical crisis, most students would seek medical care in the home town of their permanent residence rather than the university community. A typical U.S. college student can improve their coverage and save $500 to $1,000 per year by providing their own health insurance rather than enrolling in the University-sponsored student insurance plan.

Any of the major medical insurance plans at MedSave.com will improve the flexibility of coverage and raise the overall amount of protection. A healthy student who expect to need minimal medical care will save an average of $500 per year by selecting commercial insurance over the University's plan. Popular choices are listed below. See the state listings for details of available plans. Students with significant medical history, those who are pregnant or anticipate a likelihood of ongoing medical care  should use the UCF plan and not commercial insurance.

Supplemental Insurance - Regardless of the selection of the primary coverage, supplemental health insurance is recommended to reduce the financial exposure of the primary health insurance. All students qualify regardless of residence or health history. Most of these plans cover pre-existing medical conditions after a waiting period.

Coverage for U. S. students

University of Central Florida has few specific requirements for domestic students. Proof of health insurance coverage is required at the time of registration from students who are U.S. residents. All of the major medical insurance companies listed at MedSave.com provide acceptable alternatives. The most popular plans for U.S. students are short term major medical insurance primarily because it is the least expensive type of major medical insurance with adequately high amount of catastrophic coverage. These plans usually offer higher limits of coverage and more freedom to choose doctors and hospitals in the student's home town or across the country. These plans offer immediate proof of coverage at the time of online enrollment.

Policy Deductible - The average deductible for a U.S. major medical policy has increased to more $1,000 in recent years so few policies would actually meet this requirement. One major insurance company calculated that less than 15% of the policies issued in 2007 had a deductible of $500 or less. It is always possible to reduce your policy deductible by paying a higher premium but this is not a financially wise decision. The cost to change a $1000 deductible policy to  $500 deductible policy would be more than $500, so there is little financial incentive to make this change. Increasingly, U.S. employers are providing group health insurance with much higher deductibles ($5,000 for example) and employees may purchase individual supplemental policies to cover the smaller medical costs. Additionally, federal law requires that some health insurance plans like Medical Savings Accounts and Health Savings Accounts have a higher deductible and this law includes a provision that dictates that federal law will prevail in the event of a conflict. While this provision was never intended to dictate coverage to a university, we presume that University of Central Florida would concede in this circumstance.

Pre-existing medical conditions - All U.S. health insurance companies cover pre-existing medical conditions in accordance with federal laws known as "COBRA" and "HIPAA". In addition, some states also have laws that govern coverage for policies issues within its borders. Resulting coverage for pre-existing medical conditions depends on the specific facts and history of each covered member. In fact, both federal and some state laws prohibit coverage for pre-existing medical conditions. We conclude that it is impossible to make a blanket statement that any health insurance company covers all pre-existing medical conditions. This discussion is not relevant to the large majority of University of Central Florida students who do not have recent significant medical history that would be defined as a "pre-existing medical condition" by their insurance company. (A pre-existing medical condition is usually defined as the diagnosis included in a member's recent medical records. Most students do not have "pre-existing medical conditions" as defined and therefore do not have any waiting period for coverage. Pre-existing medical conditions are also not relevant when an insurer recognizes a Certificate of Creditable Coverage).

Worldwide coverage - Most major U.S. health insurance companies limit coverage outside the U.S. to emergency care only. When international medical insurance coverage is needed it can be easily added to the underlying domestic insurance at a nominal cost (often less than $3 per day) for the period that international travel is anticipated. International polices can be issued for only a few days or for a year or longer.

Mental health and substance abuse coverage - The majority of U.S. health insurance plans provide the amount of coverage required by state law in the state they were issued. Since this coverage varies from state to state (based on the state of issue, not on the current residence), the benefits in a specific policy can vary. All MedSave.com policies comply with state and federal mandates for mental health and substance abuse coverage.

ID card - All MedSave.com insurance plans provide proof of insurance in the form of an ID card. In most cases the card can be downloaded and printed at the time of online enrollment for immediate proof of coverage.

Provider network - All MedSave.com insurance plans provide coverage with any doctor or hospital in the U.S. and a substantial network of providers are available within 20 miles of UCF main campus. There is no penalty for using an out-of-network provider although billing may be simplified by using a network provider. See www.PHCS.com for a provider search tool.

Individually purchased vs. employer-provided coverage - In the past most Americans received their health insurance through their employer and college students were covered as dependants under their parent's group insurance plan. This is changing rapidly. Each year fewer families are covered by employer-provided insurance. The percentage of Americans who purchase their own health insurance under consume-driven health care plans is expected to grow from 8% in 2007 to more than 32% by 2012. The legal framework of benefits provided under employer-provided coverage is significantly different than for individual health insurance so significant social changes will accompany this trend. Healthy individuals tend to find better coverage at a lower price under individually purchased private health insurance. Those who have ongoing costs from pre-existing medical conditions tend to prefer employer-sponsored group insurance. Universities are likely to adapt their student health policies and procedures in accordance with this trend.

In recent years MedSave.com has observed that college students who purchase their own health insurance online tend to but the least expensive coverage with the greatest up-front benefits for low cost medical items like routine doctor's visits. Students who purchase their own private health insurance have a disturbing track record of purchasing inappropriate types of insurance (and in some cases buying into scams that are not legitimate health insurance at all), including insurance for which they were not eligible or would not cover their known medical expenses. These mistakes are presumably caused by their inexperience with the complicated topic of health insurance. Parents, universities and most older adults tend to be more concerned with qualify of health insurance protection for catastrophic expenses. This might be the reason that colleges and universities push students to enroll in the insurance plan selected by the school. While this is a great option, it should be an option and not a mandatory requirement. Mandatory enrollment in a group insurance plan sponsored by the school is likely in violation of the intent of state insurance laws and, at best, creates a conflict of interest for the University and its insurance adviser. We firmly believe that Americans - including college students - should be forced to give up their right to select private individual health insurance simply because of the risks associated with making the wrong consumer decision. University Trustees should be urged to allow their students to select from all responsible health insurance options, especially in this time of crisis for health care affordability.

Renewable vs. Non-Renewable Coverage - There are two types of major medical insurance available to students. The first is a limited term coverage like the UCF Aetna plan and commercial short term medical insurance plans. This coverage ends on the date defined in the policy. The second type is called "renewable" and does not contain an ending date. Renewable coverage is more expensive than short term coverage; the renewability provision generally accounts for about one third of a policy's total cost. Most students opt for non-renewable insurance. Insurance industry statistics indicate that less than one percent of students who have the option of renewing coverage keep the same insurance policy for more than two years after leaving school.

Short term medical insurance generally provides the best value for students with no significant medical history. These plans can be purchased for a semester, a year of for up to three years at a time. These are full major medical insurance plans that provide high levels of coverage with any doctor or hospital anywhere in the U.S. Typical premium cost is about $75 per month, or about half of many other alternatives. These plans are not suitable for students who are likely to need ongoing management of care indicated by a history of ongoing medical issues.

For permanent renewable coverage that includes coverage for pre-existing conditions, see Celtic Insurance and Golden Rule Insurance. Both are reputable companies that offer low priced insurance to young adults.

Most Popular Insurance - The most popular student health insurance plans in the United States are American Health Shield and and Simple STM. That is not to say ithey are always the best choice, but the plans enjoy a strong reputation that propels them forward in popularity from year to year. American Health Shield does not offer a downloadable ID card. Coverage is confirmed at the time of enrollment by e-mail and ID cards are sent by mail a few days later.

Highest Quality Insurance - We strongly recommend the 6 month, one year and 3 year major medial insurance policies available in most states under the name "Secure Med". These are among the highest quality immediate issue medical plans regardless of age but they offer lower prices for young adults. See your state listings for availability. All of these plans offer immediate ID card downloads so they are popular "last minute" choices.


International Students

UCF has more stringent requirements for international students. Regardless of the health insurance a student may have in their country or origin, separate U.S. insurance is required while attending UCF. The insurance must meet the University's specific coverage requirements. The U.S. federal government also requires that those visiting this country (both students and their dependants) on a J-1 or J-2 visa carry health insurance.

Health insurance is required for the entire duration of the semester for which you are trying to register. If you want to register for the fall semester, you will need to be covered from August 20 until January 5 of the following year. For the spring semester, you will need to be covered from January 5 until May 20. If you want to register for the summer semester, you will need to be covered from May 20 until August 20. If you are not taking classes or if you are out of the country during the summer semester, you are still required to have health insurance. To avoid any confusion with those dates, the office advises you to have annual coverage. MedSave.com recommends a policy called "Inbound Immigrant" to meet all of the University's requirements. This is currently the most popular insurance for international students attending college in the United States. Like most private insurance, it keeps the premium cost low by excluding coverage for some items (like takeover of payments for ongoing medical treatments) not are needed by a majority of applicants. This insurance has a low deductible and includes $10,000 medical evacuation and $7,500 repatriation coverage.

It is mandatory for all international students who have insurance from an outside company to have a UCF Compliance Form filled out by their insurance representative. The Compliance Form lists what the insurance requirements are and the office must see what your insurance covers, in detail.

UCF Compliance Form for international students on F1 or F2 Visa
UCF Compliance Form for international Student on J Visa

All policies for international students include medical evacuation and repatriation benefits and international medical plans, including the "Inbound Immigrant" plan for international students previously recommended. MedSave.com provides the UCF compliance forms required for international students. Simply print out the appropriate form and add your policy information. If a manual signature from MedSave.com is required, fax the form to 800-609-0683 or e-mail to onlineadviser@medsave.com.

Tips for University of Central Florida Students

Health insurance is primarily controlled by the state where the policy is issued (rather than the state of permanent address or the school address) which determine the price and coverage details. All plans provide national or international coverage, so for most students the choice of address is primarily a pricing issue. Students with specific medical conditions must also consider coverage laws and "state mandates". Students who spend time in multiple states can use this to their advantage through "address shopping". For example, a diabetic student from New Jersey will do better with a plan from their home state while a healthy New York resident will save more than a thousand dollars each year by using the Florida school address. See the state by state listings for more information.

Additional Resources

Health insurance coverage can be a complicated topic. MedSave.com offers a free personal OnlineAdviser service that brings professional advice by e-mail for any medical coverage situation or health insurance question. Additional articles and resources are available online here at  MedSave.com. See the site map for a complete listing.


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