While University students were enjoying their spring breaks, President Obama signed the historic health care reform bill into law.
Under this law, officially known as the Patient Protection and Affordable Care Act, young adults can stay on their parents’ health care plans as dependents until age 26. This provision goes into effect in September.
When that happens, college students around the country will have the option of having their own individual insurance plan or being on their family’s insurance plan.
This issue can be complicated because there’s a lot of variation between insurance plans, said Jeff Roedel, chief operating officer of the Alumni Insurance Program. If a student’s parent is covered by an employer group plan and it is inexpensive to add a dependent, then that may be a good choice. However, it could be expensive to add a dependent, or the particular plan may not permit dependent coverage.
“Graduates will need to take a look at what their family’s plan will provide and what the cost is,” Roedel said. He encouraged students to compare the costs of different insurance plans before making a decision. He added, “Whatever their situation, they need to have health insurance.”
Every student should have health insurance to help cover unexpected medical expenses that may arise, according to the University Health Center Web site.
College students and recent graduates, typically young, healthy people, are often uninsured. According to a recent Gallup poll, coverage is least common among 22-year-olds — 34 percent are uninsured.
Mike Eyster, associate vice president for student affairs at the health center, said some students choose not to have health insurance so they can afford school.
“It’s a dilemma college students around the country are facing,” he said. “I’m hopeful that this bill will result in students having access to medical care.”
Included with the health care reform law is an overhaul of funding and financial aid for college students.
Starting in 2014, the bill will cap new borrowers’ loan payments at 10 percent of their net income and will forgive any remaining debt after 20 years of repayment. More than $2.5 billion will be invested in historically black colleges, universities and minority-serving institutions. Funding for the College Access Challenge Grant program, including $750 million for college access and completion support programs, will increase.
“Loans will be easier to get,” Jeff Scroggin, president of College Democrats at the University, said. “It’s a huge victory for students.”
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