How to choose the right insurance plan

With medical expenses in the USA being the highest in the world, being insured is a must!

Choosing a health insurance plan that is right for you is an important responsibility when deciding to study in the US. It may seem low on the list of priorities for incoming international students among all the other tasks to remember, but having health insurance in the US is a necessity. You need to make sure you are covered if and when you need it in order to avoid unnecessary financial burdens and worry.

We hope that this guideline will help you to think about the coverage that you require and answer some questions about finding the right insurance plan for you

When looking for insurance, you should look for:

• Finding an alternative to your school’s plan will save you a lot of money!

  Shop around! If your school offers an expensive health insurance plan, find out if it can be waived – search for the waiver requirements (there is usually a waiver form you can get hold of which will indicate all of these requirements); it will mention how much coverage you need to have for medical evacuation, repatriation of remains, etc. Use this list to find out if ISO has a plan for you.

  A good place to start is ISO's "Special school plans" page. If you don't see your school listed there, email us at ISO and include your school’s waiver requirements. We can then match you with the plan that best suits your school’s criteria. If it turns out that we don’t have a plan that fits, we might even be able to amend some of the existing plans until they meet the special school's requirements.

• Check with your school’s international student office or association. Many associations partner with ISO to make affordable health insurance more accessible for their students.
• Some schools are now mandating that health plan meet guidelines that have been put in place by the Affordable Care Act (ACA). For this reason, we have recently introduced our new set of ACA-qualified plans. If you need a plan that is ACA-ready, ISO has you covered.
• Take a look at all the plan options, covered medical expenses and exclusions. Look over the policy brochures and make sure that you know what you’ll be covered for and what you won’t. Start by comparing maximum benefits, co-insurance and deductible. If you have questions, contact the insurance company or ask your advisor for assistance.
• Look into the PPO network of service providers and check how much it will cost you to go to a qualified doctor which is out of the assigned network. Are there providers near you?

Avoid making these mistakes:

• Thinking you don’t need medical insurance. Please remember that an ordinary injury in the US, such as a broken hand, could cost anywhere from $3,000 to $25,000 (if surgery is needed). A minor operation might cost you as much as $17,000. Prepare for the unexpected and protect yourself! Finding a plan that has a lower deductible and a higher co-insurance may help you to afford the cost of treatment without the extra stress of worrying about your finances.
• Comparing monthly premiums alone can be a costly mistake. Looking at monthly rates can deceive you from actual benefits. Do not focus your attention on monthly rates entirely. When comparing plans, focus on the benefits you get for your money! For example, when choosing between two plans, compare maximum benefits. Calculate how much money will go out of your pocket in case of an accident or sickness and decide how much coverage you think you’ll need. What is the amount of the deductible or co-pay associated with your plan? If the deductible is over $250, ask yourself if you can afford to pay that much to seek medical treatment every time you need to see the doctor. You may be paying a reduced monthly premium, but should you ever need to see the doctor, you may not be in a position to pay the higher deductible.
• Don’t overlook high deductibles and co-insurance payments. Most medical insurance plans require you to pay a portion of your medical bills when you submit a claim. Please see below for a description of out-of-pocket expenses you should expect.

Expenses out of your pocket

The first expense is called deductible. This is the dollar amount of covered expenses you are responsible to pay the physician or hospital before the policy will pay any benefits. If your deductible is $100 and your medical invoice is for $250, the insurance company will reimburse you only for $150 ($250-$100). Per event means you pay the deductible once for all different services and treatments you get per one sickness or accident.

The second expense is called co-insurance. Co-insurance is the fixed percentage of your medical bill the insurance company will pay. The rest will have to be paid by you, out of your pocket. For example, if you have a hospital bill for $5,000 and your co-insurance is 80%, the insurance company will pay 80% of the bill and you are responsible for the other 20%.

Look for a plan with a minimal co-insurance or 100% coverage of your medical expenses. These plans might cost a few dollars more, but you will get it all back with the first claim paid.

In addition, be aware of the benefit limits and usual and customary costs associated with various treatments in your insurance policy. When you look over the policy information, you may find that specific costs and coverage restrictions will help you decide if the plan is a good plan for you.

Keep all of these guidelines in mind when comparing the various insurance plans available to you. Make sure you choose the plan that you think provides the level of coverage you need and will keep you concentrating on your studies and not your medical bills!