By College is an exciting time, but it can also bring new challenges. One item that families may overlook as they prepare to send their kids off is health insurance coverage. Typically, not all schools require students to have health insurance, but having coverage can help students afford the care they need when they’re off at college studying. This article helps people understand the basics of health insurance for college students and explores a few options for getting coverage.
How does health insurance work?
Generally, health insurance is a broad type of insurance that helps one pay for medical care costs, such as:
- Preventive care (such as checkups and vaccinations)
- Specialist visits
- Surgical procedures
- Hospital stays
- Prescription medication
- Medical devices
The policyholder pays monthly premiums to maintain coverage. When a policyholder needs coverage, they will often pay part of the cost in the form of the following:
- Copays: A fixed fee the policyholder must pay
- Coinsurance: A percentage share of the care cost
- Deductible: A minimum amount one must pay for coverage to kick in
The policyholder may also provide their insurance information. Typically, the medical provider communicates with the insurer to receive reimbursement for the remainder of the care cost. In some cases, policyholders may need to file a claim after receiving care.
In the past, everyone in the U.S. was required to have health insurance under the Affordable Care Act (ACA). However, this requirement was removed in 2018. Some states still require everyone to have health insurance, so students should check to see if their state is one of them.1
How long can an individual stay on their parent’s insurance plan?
Wondering, “how long can someone stay on their parent’s insurance plan?” The ACA lets dependent children in the U.S., married or unmarried, stay on their parents’ health insurance until the child reaches the age of 26.2 This usually applies to employer plans as well as plans in the individual market.
Many undergraduate college students tend to graduate from four-year universities at 22 to 24. Even those who attend graduate school immediately afterward may complete school by age 26. This means many college students may be able to stay on their parents’ plans until they leave school and start working. As a result, students may begin earning a full-time income in time to apply for their own plan. This can help prevent gaps in coverage.
Other options for student health insurance
Staying on a parent’s plan can help the student and their parents save money by bundling everyone into one plan. However, students may want their own plans for a few reasons:
- They’re older than 26
- They want to keep medical information private from parents
- They need coverage their parent’s plan doesn’t have
Fortunately, students have some other options:
Student health plans
Some colleges and universities may offer school-sponsored plans called student health plans. These are generally tailored to the needs of college students, offering basic coverage for more affordable premiums.
Schools that offer these plans generally add the premium amount to the student’s tuition bill for the year if the student enrolls in a plan. This can help streamline managing the premium and may allow the student to use certain forms of financial aid.
The downside is these plans may have enrollment or use restrictions. Students may not be able to seek off-campus care, and part-time students may not be able to enroll. Students should check with their school and call the relevant department with any questions.
Employer health plan
Students working full-time may have employer-sponsored health insurance available through their workplace. Employer health insurance typically offers well-rounded health coverage at a lower cost than private health plans since the plan’s risk is spread across multiple people. Supplement insurance policies, like dental and vision, may also be available. An employer health plan can work well for professionals returning to school or attending part-time who want to save money on good coverage.
Medicaid
Medicaid is a program that helps people obtain basic health insurance coverage if they fall below a certain income threshold. Students may qualify, but each state may have different sets of rules and income requirements for its Medicaid programs. Students should contact their state’s Medicaid program to see if they could qualify.
Private health plans
Generally, private health plans are available through private insurers and the health insurance marketplace. Private plans tend to be the most expensive. However, students who can afford a private plan may have many choices available. The online health insurance marketplace can recommend plans based on the student’s information and let them sort and filter by various factors, such as costs. Plus, policyholders may qualify for a premium tax credit if they meet certain IRS-specified requirements.3
The bottom line
Courses, homework, and exams aren’t the only sources of learning in college. Many students are independent for the first time, which entails learning about financial topics like health insurance. Students can generally stay on their parents’ plans until age 26. After that, however, they’ll usually have to explore coverage through their school, employer, state government, or the private marketplace. The good news is that by learning how health insurance works now, students can be more prepared to understand their options and coverage after graduation.
Sources:
1 HealthCare.gov – Health coverage exemptions: Forms & how to apply. https://www.healthcare.gov/health-coverage-exemptions/exemptions-from-the-fee/ Accessed: Apr. 3, 2025.
2 U.S. Department of Labor (DOL) – Young Adults and the Affordable Care Act: Protecting Young Adults and Eliminating Burdens on Businesses and Families FAQs. https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/young-adult-and-aca. Accessed April 3, 2025.
3 Internal Revenue Service (IRS) – The Premium Tax Credit – The Basics. Updated September 13, 2024. https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics. Accessed April 3, 2025.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Tier One coverage is underwritten by Tier One Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (NAIC 92908).
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