Insurance
      Back to home
      1. The White Paper for F1 Students
      2. F-1 Living in U.S.
      3. Insurance

      F-1 Insurance: Health Insurance

      Medical expenses in the U.S. can be very high, making health insurance essential for international students. This article discusses key considerations for purchasing health insurance and explains health insurance terms.

      Why is Health Insurance Important for International Students?

      While U.S. law does not require F-1 visa holders (international students) to have health insurance, many U.S. universities have policies that mandate it. Insurance requirements may vary significantly between schools.

      Failing to obtain health insurance as required by your school can lead to serious consequences:

      1. The school may freeze your student account, restricting your ability to enroll in classes or request transcripts.

      2. In extreme cases, not having insurance could be considered a violation of F-1 visa regulations, potentially jeopardizing your legal status.

      Moreover, some states have specific health insurance requirements for international students. For example, in California, not having health insurance during OPT (Optional Practical Training) can result in an $850 fine.

      Most importantly, healthcare in the U.S. is extremely expensive. A single surgery can cost hundreds of thousands of dollars, and even an ambulance ride can run into thousands. Without health insurance, students will face devastating financial burdens if they experience a medical emergency. Therefore, having health insurance can provide financial protection for international students.

       

      Options for Health Insurance

      (1) Group Health Insurance Provided by Schools

      Many U.S. schools offer health insurance plans for their international students. These plans are usually mandatory, unless students choose to waive them by purchasing qualifying off-campus insurance. In general, school health insurance costs between $2,000 and $3,000 per year.

      While school health insurance is a group plan, the premiums are not necessarily lower than off-campus options. This is because insurance companies cannot deny coverage to high-risk individuals within the school, resulting in higher premiums for each person.

      For health insurance in the U.S., age 25 marks a significant threshold. All insurance plans see a price hike at this age. Costs start to rise significantly at age 26 when individuals move into a new pricing bracket. If you are over 25, sticking with the school's group plan is likely more economical. However, if you are under 25 and in good health, exploring off-campus insurance options might prove more cost-effective.

      (2) External Health Insurance

      Some schools allow students to use external health insurance instead of the school’s group plan. While external insurance might be cheaper, it often comes with a higher deductible than school insurance.

      Major health insurance companies for international students include:

      • ISO Insurance: Designed for international students and reasonably priced. Basic plans range from $30 to $50 per month.

      • StudentSecure by HCC: Offers various plan options, starting at $45 per month.

      • PGH Global: Renowned for its comprehensive medical network. The cost is approximately $60 per month.

      • Aetna: Partnered with some universities, with costs around $200 per month.

      The price of an insurance plan should not be the only consideration. Lower premiums usually mean the insurance company covers a smaller portion of costs or has higher claim thresholds. Insurance companies typically offer different plan levels, so careful comparison is necessary to find the right one for your needs.

       

      Glossary of Health Insurance Terms

      International students often find it overwhelming to understand the various health insurance terms used in the U.S. Here is an introduction to common health insurance terms and how to use it to evaluate the quality of an insurance plan:

      • Premium: The amount you pay for your health insurance, typically on a monthly basis.

      • Deductible: The amount you must pay before the insurance company starts covering expenses. The lower the deductible, the better the plan. However, lower deductibles usually come with higher premiums.

      • Co-Pay: A fixed amount you pay each time you visit a doctor, similar to a registration fee. Even if your insurance covers the treatment, you still have to pay this fee, which is usually around a few dozen dollars. Lower co-pays are preferable, but they usually come with higher premiums.

      • Coinsurance: The percentage of medical costs you need to pay after you have met your deductible. A lower coinsurance rate is better, but again, it generally comes with higher premiums.

      • Out-of-Pocket Maximum: The maximum amount you have to pay out-of-pocket in a policy year. Once you reach this limit, the insurance company will cover 100% of your medical expenses for the rest of the year. The lower this number, the better the plan.

      • Maximum Benefit: The maximum amount the insurance company will pay out, which could be calculated per visit, per policy year, or over your lifetime. A higher maximum benefit is preferable.

      • In-Network: Refers to healthcare providers that have agreements with your insurance company. Insurance covers more of your costs when you use in-network providers.

      • Out-of-Network: Refers to healthcare providers outside of your insurance company’s network. Insurance covers less, or sometimes none, of the costs if you use out-of-network providers.

      • Pre-Existing Conditions: Refers to medical conditions that existed before you purchased your insurance. Some health plans may not cover expenses related to these conditions.

      • Waiting Period: For certain medical conditions or treatments, you must wait for a period before they can be covered by insurance. This period is usually between six months and one year.

       

      PPO vs. HMO

      When choosing health insurance, it is necessary to understand the differences between PPO (Preferred Provider Organization) and HMO (Health Maintenance Organization):

       

      PPO

      HMO

       

      Flexibility

       

      PPO plans allow policyholders to choose any healthcare providers without a referral. Costs are lower when using in-network medical services. You can also choose out-of-network healthcare providers, but the costs can be much higher.

      HMO plans usually require policyholders to select a primary care physician (PCP). A referral from the PCP is required to see a specialist. Except for emergencies, HMO may not cover out-of-network services.

       

      Costs

       

      PPO plans generally have higher premiums but offers greater flexibility. You may need to pay more when seeing out-of-network healthcare providers.

      HMO plans typically have lower premiums, but they may come with more restrictions.

       

      Claims Process

       

      You may have to cover a large portion of medical costs when seeing out-of-network doctors.

      You do not need to go through additional claims procedures unless you use out-of-network services.

      Network

      Due to their flexibility, PPO plans are more suitable for people who frequently travel or regularly change residences.

      HMO plans usually provide services within a specific network, making it more suitable for people with a fixed residence.

       

      Insurance during OPT

      Some international students may experience a gap in health insurance coverage between graduation and starting a job. To bridge this gap, consider the following options:

      • Between Graduation and the Start of OPT: Consider purchasing short-term travel insurance to cover this transitional period.

      • After Your OPT Begins: Explore student insurance plans designed specifically for those on OPT. These plans are generally affordable and flexible. If your employer offers group insurance, it is usually best to enroll in that plan.

       

      Dental and Vision Insurance

      In the U.S., a health insurance plan usually does not cover dental and vision care, so these plans need to be purchased separately. If you expect to use these services frequently, it is important to check whether your health insurance plan offers any dental or vision benefits.

      • Vision Insurance: It typically covers eye exams and prescription glasses. Some health insurance plans may include limited vision insurance.

      • Dental Insurance: Dental insurance generally covers routine services like oral exams, cleanings, and fillings. Most health insurance plans do not include dental insurance.