Health Insurance

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The cost of health care in the Unites states is extremely high and all International students are required to have health insurance. Students can get the insurance either from India or in the US. If you are not familiar with the insurance jargon go through the next section before going into the details of purchasing insurance in India and US.

Some basic terms:

Deductible: This is the amount up to which you will pay the full cost of treatment. For example, if your deductible is $100 and your bill is $50 you pay the full $50. But if your bill is

Coinsurance: This is the percent of your bill the insurance will pay after you exceed the deductible

Both deductibles and coinsurance when you are hospitalized. For doctor appointments, you will pay a copay.

Copay: This is a flat amount you pay for a service and the rest is paid by the insurance.

For example, if you have an insurance with a deductible of $1000 with a coinsurance of 20% and your bill is $50, you have to pay the entire $50. But if your bill is $15,000, your bill is calculated as follows:

Total Due $15000

You pay: $1000(Deductible)+($14000*.2))(coinsurance) = $1000+2800 = $3800.

Read this article if you need a more detailed explanation.

Insurance in India:

Pros	Cons
Costs much less in India	You have to pay money upfront and get it reimbursed
Many plans cover more than just health. For example, plans cover baggage loss, passport loss, sympathy visits in case you are sick, your travel to in India incase of some unfortunate event, disruption of studies etc.	It is your responsibility to make sure the policy is university compliant.

One advantage, which might be pretty obvious, of buying insurance from India is that its cheaper. For example, when I got my insurance from the University, my insurance from the University, just to be safe, it cost me $1000 (Rs.40,000 for a year) whereas policies in India normally cost less than Rs.20000 in India.

Plans in India cover more than just health, as mentioned in the table. Just make sure that it meets university requirements. For example, these are the minimum requirements at Purdue University (where I study).

You may purchase one of these plans upon your arrival to the University. If you wish to participate in other plans you may do so, however, your health insurance policy must meet University established minimum criteria:

*Medical benefits of at least $50,000 per accident or illness.

*Repatriation of remains in the amount of $7,500.

*Medical evacuation coverage in the amount of $10,000.

*Annual deductible not to exceed $500 per illness per person.

The insurance carrier must carry and maintain one of the following ratings:

A.M. Best Rating of "A-" or better.

Insurance Solvency Intl., Ltd. (ISI) rating of "A-" or better.

Standard and Poor's Claims paying ability rating of "A-" or better.

Weiss Research, Inc. rating of "B+" or better.

Backed by the full faith and credit of the home government.

Some Insurance Providers in India:

This list is not from personal experience.

Bajaj Allianz
ICICI Lombard
TATA-AIG
Oriental insurance

Plans in the USA:

Pros	Cons
Your insurer is directly charged, you need to only pay your share (deductible/copay, coinsurance, if any).	Costs considerably more than India
Your insurance will most likely be accepted in any medical facility.	You do not get features like baggage loss etc.

There are some cheaper options like www.isoa.org where insurance is cheaper than university policies. I get mine from ISOA (International Students Organization -America) for $31 a month but I still don't get the extras like the insurance from India.

Useful Links:

Going abroad for studies? Buy your insurance online: This is an informative article about how you should shop for insurance and what criteria you should consider. It also has a table that presents the approximate cost of various procedures in India and USA.

Student Insurance in India-by Manish Jaiswal: This article explains some basics about insurance from India and abroad. I am not sure about the claim that insurance from India is valid for only 180 days. http://www.scribd.com/doc/2902276/Student-Insurance-in-India-by-Manish-Jaiswal

Health Insurance: This is an page from the website of Student Council of India a student organization at the University of Maryland. Lists pros and cons of insurance from India clearly.

Disclaimer: While every effort has been taken to ensure the accuracy of the information presented in this website, knowbe4ugo.com cannot be held liable for any errors or inconsistencies.

Last updated: 11/16/08.