Every student at Drexel University is required to have health insurance. Students can either have their own coverage that meets certain requirements such as coverage for emergency, non-emergency, inpatient and outpatient care for mental and physical health in the Philadelphia area or students can purchase Drexel student health insurance. Many undergraduate students are covered by their parents’ insurance. However, some students may have to consider Drexel’s student health insurance plan because they are nontraditional, their parent’s insurance does not provide adequate coverage in Philadelphia, are graduate students or other family concerns.
Good health insurance should meet two primary goals: protection from excessive charges for anticipated medical needs, such as primary care visits and any prescription medications for chronic conditions, and protection from crippling debt from an unexpected medical emergency.
Students should be wary that the student insurance plan is administered by UnitedHealthcare, which has faced much scrutiny over its high claim denial rates following the killing of its CEO Brian Thompson. UnitedHealth Group, the parent company of UnitedHealthcare, has faced a class action lawsuit for using artificial intelligence to deny medically necessary care for Medicare Advantage patients. It is reasonable to suspect that the company will give pushback on any expensive treatments a student may have to undergo. The student health insurance plan has an actuarial value of 88.410%, meaning that, on average, the insurance company covers 88.410% of medical costs for plan enrollees. However, the actuarial value of expensive treatments is likely lower as certain services, such as preventive care and contraception, must be covered for free. Although UnitedHealthcare is not alone in denying care, it is notorious for being an industry leader in claim denials which may force a student to choose between their life and their finances while hoping that they may win their appeal which involves more complicated systems.
Assuming that the company chooses to accept the claim, there is a $100 preferred provider deductible and $5,000 out-of-pocket maximum. For $3,030/year, this is considerably cheaper than other comparable PPO plans on the Pennsylvania Obamacare marketplace which reflects the low risk of college students compared to the general population. However, that is still a $100 deductible to meet and $5,000 maximum which is not a surprise bill most Drexel students can afford.
Suppose that a Drexel student insurance policyholder suddenly experienced chest pain and stayed one night at the Hospital of the University of Pennsylvania. According to Penn Medicine’s negotiated price list, chest pain incurs a bill of $15,700.51 and $11,300 for a night in a semi-private room. With a $100 deductible, $250 copay, and 80% coinsurance, this bill comes out to $5,730.10 for the patient but would be capped at $5,000. It is possible to get a $5,000 hospital bill in one night which could be financially catastrophic.
If the same situation happened for a University of Pennsylvania student on their student health insurance plan, the student would merely pay a $400 deductible and possibly a $100 copay for the stay. Penn’s student health insurance also comes with just a $1,500 out-of-pocket maximum. The plans differ in a $1,382 more expensive premium for Penn’s student insurance and the Penn plan relying primarily on copays, which set a fixed price for services, and the Drexel plan relying primarily on coinsurance, which is a percentage of the covered charges. For big bills, copays are better for the patient, so Drexel’s student insurance may leave the student with a large bill. However, barring a bad sports injury or car accident, a typical university student would probably not have much medical needs. Primary care visits are offered by the Student Health Center, though it is a separate department than the Office of Health Insurance and Immunizations, and the Counseling Center offers free therapy. Those two offices combined could probably deal with most student health needs which are offered for free under Drexel’s student health insurance.
While Drexel’s student health insurance is not the worst, it is not the most reassuring if a major medical incident were to happen. Students need to determine the amount of risk they are willing to take and compare options with plans offered by their parents, spouse, the Marketplace and potentially the GI Bill if they are veterans.