College students need to be educated on the basics of health insurance, according to a recent national survey(1) conducted by Kelton Research and sponsored by eHealthInsurance. In response to this need, eHealthInsurance has published Health Insurance 101, a new step-by-step guide to educate college and graduate students on the variety of individual health-insurance options they face.

As the leading online source of health insurance for individuals, families and small businesses, eHealthInsurance has made the new guide available online at www.ehealthinsurance.com/101guide.

While most students value health insurance, the majority were ill-informed when it came to identifying costs and benefits. According to the survey:

* Fewer half felt they could confidently define basic health-insurance terminology. Only 29% understood the meaning of a premium, 44% knew the meaning of a deductible, and fewer could explain co-insurance (15%) and annual out-of-pocket maximums (23%).

* College students assume that a number of important benefits - such as prescription-drug coverage (61%) and maternity needs (40%) - will be provided for them on any individual health-insurance plan, when in many cases they aren't automatically included.

Many students may assume that the school-sponsored plan is their only option - another box to check during the enrollment process. While school-sponsored plans provide a good option for students, plans of this sort may not cover medical services rendered off campus, may have low caps or may drop coverage when students reduce credit hours or graduate. In fact, a recent study conducted by Lookout Mountain Group, a nonprofit student-health study group, states that many student health-insurance/benefits plans "offered and endorsed by colleges and universities are based on outdated models and are woefully inadequate."(2)

The new Health Insurance 101 guide includes a helpful matrix of all options for college students, comparing the pros and cons of school-sponsored plans, individual health-insurance plans, student health insurance and plans covered by parents.

The guide also includes the following critical steps to help students make informed decisions on health insurance:

* Step one, "Know Why You Need It," addresses the value and necessity of health insurance.

* Step two, "Bone Up on the Lingo," provides basic definitions about terms and acronyms necessary to start researching and comparing plans.

* Step three, "Assess Your Needs," helps consumers identify the amount of coverage they need and the types of benefits they should look for in a policy.

* Step four, "Compare Your Options," outlines five criteria for choosing a plan, common pitfalls to avoid and other helpful buying tips.

* Step five, "Apply for Coverage," walks consumers through the application process and next steps after they get approved or denied for coverage.

"Students in particular face multiple challenges when it comes to health insurance," said Sam Gibbs, eHealthInsurance senior vice president and consumer expert. "Not only are they lacking the experience and vocabulary of buying their own health insurance, there are a number of options they have to consider. Our new 101 guide will simplify these options, educate students on the basics and speed them along to a more informed decision."

Consumers can download the buyer's guide online at http://www.ehealthinsurance.com/101guide.

Sources

(1) eHealth, Inc. Consumer Survey of College Students, May 14, 2009, (http://www.ehealthinsurance.com/content/expertcenterNew/CollegeStudentsSurvey_
ToplineAndResults.pdf)

(2) Analysis and Policy Recommendations for Providing Health Insurance and Health Care Services for the College Student Population, p. 31, Lookout Mountain Group, June 2, 2009, http://www.hbc-slba.com/LMG/LMG_abstract_3.5.pdf