| If your son or daughter is getting ready to pack up and | | | | good time to switch to a PPO (Preferred Provider |
| head off to college, don't forget to pack a little health | | | | Organization) that provides more flexibility in the |
| insurance along with the futons and orange crates. | | | | healthcare providers you use. To receive maximum |
| After all, the student lifestyle of late nights, one-the-run | | | | coverage, you need to use an in-network doctor, but |
| nutrition, and germ-infested dorms is more than likely to | | | | your student would have the option of going |
| require a few trips to the doctor. | | | | out-of-network by making a small co-payment. |
| But what is the best way to insure your student's | | | | 4. Change Your Health Plan to a combo HDHP/HSA -- |
| health? The answer to that question depends on the | | | | You may have been reading about the benefits of the |
| type and quality of your existing healthcare plan. Here | | | | Health Savings Account (HSA) ever since it was first |
| are four options you may want to consider. | | | | introduced by the Bush administration in 2003. An HSA |
| 1. Use the Student Health Plan -- Some families opt for | | | | allows you combine a High Deductible Health Plan with |
| the medical plan offered by the college. While this is a | | | | a designated savings account funded with pre-tax |
| viable option if you don't have an existing health plan, | | | | dollars. You use a debit card to access the account |
| it's important to realize that these college-sponsored | | | | when you need to pay out-of-pocket medical |
| health plans offer extremely limited benefits. While a | | | | expenses. This combination HDHP/HSA plan is a good |
| student plan will usually pay for trips to the college | | | | strategy if you're self-employed and don't have an |
| health center, they usually charge up to 70 percent | | | | existing health plan, and it also provides good flexibility |
| more, plus a deductible for additional medical care or | | | | for both you and your student. But it works best when |
| testing, such as lab work, X-rays and prescriptions. In | | | | you have only occasional medical expenses, so if you |
| addition, most student health plans only cover care | | | | or your student have chronic health problems that |
| received at the student health center, meaning a trip to | | | | require frequent trips to the doctor or numerous |
| emergency room could be financially devastating. | | | | prescriptions, it's best to opt for a traditional like an |
| 2. Use Your Current Health Plan -- One alternative is to | | | | HMO or PPO. |
| skip the student health insurance and keep you son or | | | | Of course, you can always provide your son or |
| daughter on your own health plan. However, if your | | | | daughter with a low-cost individual insurance policy. |
| current plan is available to you through your employer, | | | | (Consider it an early graduation gift!) While not the |
| there is a good chance it is an HMO (Health | | | | cheapest choice, it's an excellent way to provide your |
| Maintenance Organization). An HMO is the most | | | | student with security throughout the college years. |
| restrictive type of health plan when it comes to | | | | After graduation, they can choose to maintain the |
| choosing your doctors and medical treatment centers, | | | | policy on their own if they aren't covered by an |
| and if your son or daughter attends school in another | | | | employer-provided health plan. |
| city or state, he or she will most likely need a referral | | | | If you are interested in learning more about health |
| to see a physician while at school. | | | | insurance for students, or would like to shop for |
| 3. Change Your Health Plan to a PPO --If an HMO is | | | | multiple insurance quotes, please visit the website |
| too restrictive for your current needs, this may be a | | | | recommended below. |