Understanding Health Insurance: A Guide for  International Students in the US

International students often find the U.S. healthcare system quite different from home. In this guide, we share supportive advice to help you navigate health insurance in America.

Why Health Insurance is Important in the US

High Medical Costs

Healthcare in the United States is costly without insurance. Even a minor procedure or emergency can cost thousands of dollars. For example, a broken arm might cost around $3,000, and a short hospital stay could be $10,000 or more. Unlike some countries with subsidized or free healthcare, the U.S. relies on private insurance to reduce these costs.

University and Visa Requirements

Many U.S. universities require international students to have health insurance before enrollment. This is both for your protection and the school’s, ensuring you can pay for care and the university isn’t left with unpaid bills. If you are on a J-1 exchange visa, U.S. law mandates specific minimum insurance coverage (e.g. at least $100,000 in medical benefits). F-1 visa students aren’t federally required to have insurance, but most schools will insist on it or make you buy their plan. Skipping insurance is usually not allowed and never wise, given the risks.

Common Types of Health Insurance for International Students

University-Sponsored Plans: Most universities offer their own student health insurance plans. These plans are designed to meet school requirements and are often comprehensive. Many colleges automatically enroll international students in their plan and include the cost in tuition unless you prove you have comparable private coverage. University plans can be convenient and give you access to on-campus health services. They are also easy to enroll in and the university will give you guidance if you need it. 

Private or Independent Plans: You also have the option to buy health insurance from private companies that specialize in international student plans. To waive the university plan, these plans must meet your school’s minimum coverage criteria (for example, certain coverage amounts and low deductibles).

Key Health Insurance Terms to Know

Understanding a few basic insurance terms will help you choose and use your plan confidently. Here are four key terms explained:

• Premium: The premium is the amount you pay regularly (usually monthly) to keep your health insurance active. Some university plans include this in your tuition bill each semester.
• Deductible: A deductible is the amount you must pay out-of-pocket for medical services before your insurance starts paying its share.
• Co-pay (Copayment): A co-pay is a fixed fee you pay at the time of service for certain medical visits or prescriptions.
• Network (In-Network vs. Out-of-Network): A provider network is the group of doctors, clinics, hospitals, and specialists that your insurance company has contracts with.

Tips for Selecting the Right Health Insurance Plan

Choosing a health plan requires balancing what you need with what you can afford. Here are some tips to guide your decision:

1. Know Your Budget: Figure out how much you can pay for insurance. Consider both the premium (monthly cost) and possible out-of-pocket expenses. Ask yourself how much you could afford in a medical emergency if you had to pay a deductible or co-pay. If you have savings or sponsorship, decide what portion can go toward health coverage.
2. Assess Your Health Needs: Think about your personal health situation. Do you have any chronic conditions or regular medications that need coverage?If you have known medical needs (asthma, allergies, etc.), make sure the plan covers those.
3. University Requirements: Check what your school requires. Some universities set minimum coverage levels or specific features (for example, coverage for pre-existing conditions or a certain policy maximum). Your plan must meet these, or the school may not accept it. J-1 students must adhere to strict minimums by law, and F-1 students often must at least match the campus plan benefits. Always read the university’s insurance waiver criteria if you plan to buy your own policy.
4. Coverage Details: Compare benefits closely. Don’t choose a plan just because it’s the cheapest. Ensure it covers essential benefits like hospital stays, emergency care, doctor visits, prescriptions, and diagnostic tests. Look at the deductible and co-pays: can you afford them if you need care? Also check if the plan has an out-of-pocket maximum – a cap on what you pay in a year, which is a safety net.
5. Provider Network and Location: Make sure the plan’s network has providers in the area where you’ll live (your university town or city). A great insurance plan isn’t helpful if no local doctors accept it.
6. Emergency and Support Services: Look for extras that matter to you. Some plans also offer multilingual customer service, telemedicine (virtual doctor visits), or wellness programs.
7. Speak to other students & the university: Speaking to other international students and even your university international student advisors about insurance in general, better companies and even which plans are best can go a long way in helping you make the right decision. 
8. Managing Finances: For African students studying in the US, using a secure and efficient payment platform like Vavita can simplify paying your tuition fees, living expenses, including insurance, and accommodation payments. Vavita is fully licensed and regulated, providing transparent exchange rates and fast, reliable transfers directly to your educational institution. With cost efficient and secure  payments, Vavita can ensure you have more money to allocate to your insurance and have one thing less to worry about.allowing you to focus entirely on your academic goals and overall health and well-being while studying in America.

Take your time to research and compare plans. Write down what benefits you need most and compare them against plan brochures. Speak to other international students or international student advisors for recommendations if possible.