Surprise cost: understanding college health care costs
Sending your kid off to college? There’s a hidden fee to stack onto your attendance price. Even if a family already has health insurance, you might be forced to cough up thousands of dollars to get a separate policy for your child.
Why you might need to pay for secondary health insurance
Most colleges and universities require their students to have health insurance. Many schools require the insurance to have in-network doctors near the school.
If your child ends up going to school nearby, your family’s health insurance plan might qualify. But the further away you go, the lower the chance your insurance plan will qualify.
School requirement examples
Many colleges have specific requirements that students must meet if they want to opt out of the affiliated health insurance plan. Typically, schools require the student’s existing plan to have in-network doctors in the area.
Here are some specific examples
Washington University in St. Louis - Washington University requires the existing plan to qualify under the Affordable Care Act’s “Federal Bronze Level” or better. This defines maximum coinsurance and types of care covered. The school also requires a maximum deductible of $3,000 or less per person. Further, it requires the plan to cover include Barnes-Jewish Hospital AND Washington University Physician’s Network must be in-network providers.
University of California System - Universities that are part of the UC system offer UC SHIP insurance. To waive coverage, students must have an existing health insurance plan that provides access to an in-network primary care provider, in-network hospital, and full, non-emergency medical and behavioral health care within reasonable distance of campus. Additionally, employer-sponsored plans must have an out-of-pocket maximum below a present limit. The exact requirements change from year to year; see UC’s website for more information.
University of Illinois Urbana-Champaign [link] - Urbana-Champaign is in a rural area, and the school requires health insurance plans to provide in-network emergency and non-emergency care within a 50-mile radius of the campus. Plans must also meet Affordable Care Act minimums, including providing mental health care services.
Princeton University - Princeton requires plans to have limited out-of-pocket maximums and will not allow students to opt out with HMO plans, Kaiser plans, Medicaid, Medicare, and traveler’s plans.
Some schools, such as the University of Washington [link], do not require domestic undergraduate students to have health insurance.
How much college health insurance plans cost
If you don’t qualify to opt out, be prepared to pay thousands of dollars for the school insurance plan. Here are some insurance plan costs for the 2024-2025 school year:
University of California: Rates vary by campus. For 2024-2025, undergraduate students at UC Irvine pay $2,653 for the year, while UC Berkeley [link] charges $4,028 for two semesters.
Cornell University : Cornell charges about $4,000 per student for the 2024-2025 school year.
Syracuse University: Syracuse’s fee for 2024-2025 is $2,474.
University of Miami: Students at University of Miami pay $4,041 for the 2024-2025 school year.
These rates are for the student only. Students with dependents or spouses generally pay higher rates.
Preparing for health care in college
You might be able to save money by selecting the right family health insurance plan during your annual enrollment. If you select a plan that meets your school’s requirements, you can typically waive coverage at the school for the coming school year.