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Sep
09
Healthcare Reform Caveat for Back-to-School International Students in US Colleges
Posted on Sep 09, 2010 by Sergio Ulloa (G+)
An unintended side effect of some provisions in the Obama administration's new healthcare plan has the potential to prevent public and private universities in the US from offering certain types of health insurance to their students, including international students. Certain plans self-funded by US universities, or those administered through licensed health insurance companies, are in danger of not being compliant under some provisions stipulated by the Patient Protection and Affordable Care Act, according to the American Council on Education (ACE), a national organization trying to alert the White House and the US Department of Health and Human Services on these potential consequences once the new health care plan comes in effect. The standard set for "minimum essential coverage" as mandated by the healthcare reforms becoming effective in 2014 affects individual health insurance coverage, and may be unattainable by some university student plans; forcing their students and parents to seek coverage from another insurance provider, or pay a tax penalty. The effect of the "minimum essential coverage" provision would mean that many American colleges and universities, which have comprehensive healthcare infrastructure and personnel already in place, would not be able to provide quality health coverage for students who need it. One possibility would be for the students to get a policy for a limited period, usually lasting for less than one year, which under the Health Insurance Portability and Accountability Act classify as being short-term. At this point in time, even students under a comprehensive student health plan would not meet the said minimum essential coverage requirement due to what is termed as a "definitional technicality," according to ACE; this is something that the organization has attempted to clarify with the US government. The way forward for the institutions falling in the case described above would be to negotiate for health insurance with a coverage period lasting up to, or including the whole of, 2014. Due to the geographical limitations in the health insurance plans often provided to parents of international students through their overseas employers, the interim coverage can be seen as an extremely valuable benefit. Once the health reform bill becomes effective, individuals will be able to remain under the health insurance plan of their parents up until 26 years of age. Individuals not eligible under this provision, would also be able to enjoy coverage under this type of interim health insurance plans. International students at US universities whom are required to show proof of health insurance, may be given the choice to buy health insurance through a company like Academic Health Plans, managed by Aetna, unless they already have their own health insurance. In other cases, the universities may make it compulsory for their international students to purchase health insurance through the Academic institution they are attending. Domestic students are generally given the freedom to choose the health insurance from the provider of their preference, as an option to purchasing it directly from the university. Given the current uncertainty of how much the implementation of the health reform will impede the current way some US universities and colleges are handling the sale of health insurance plans to their international students, a feasible choice would be to recruit the services of insurance brokers, so that the institutions are freed from playing the role as insurance agents. This clean cut approach would ensure that their international students deal directly with the insurance company underwriting their health insurance plan. Insurance Company mentioned: Aetna
Aetna is a leading global diversified healthcare benefits company head-quartered in the US, serving approximately 35.8 million people with information and resources to help them make better informed decisions about their healthcare. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioural health, group life and disability plans, and medical management capabilities and healthcare management services for Medicaid plans. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labour groups and expatriates.