Myth Busted: International Students Can Afford US Health Insurance

There is a common myth surrounding traveling to the USA for higher studies at universities. Many international and Indian students believe it is impossible to secure health insurance at an affordable price. 

Nothing could be further from the truth. While it might be challenging to sort through policies and various riders, there exist multiple policies that are quite affordable. 

This article aims to bust this myth about international student health insurance. We will go deep into the common misperceptions and clarify how you can easily obtain health insurance for foreign students. 

Common myths about health insurance for international students

There are plenty of misconceptions about student insurance. Most are spread via social media, which is perhaps the least trustworthy resource in this respect.

There is no need to feel unnecessary stress and worry about the affordability of student insurance in the USA. 

In the following section, we debunk various insurance misconceptions and share the truth.

Myth 1: Health Insurance for Foreign Students is Always Expensive

This is most likely the most repeated and utterly false misconception about student insurance. There is no denying the fact that the health care cost in the USA is sky high. The median price of a root canal is $1,500 (INR 133,500), about ten times the median cost in India. 

It is also true that without insurance, it is impossible to pay these charges. But the myth that all international student health insurance plans are overpriced is a huge exaggeration. 

Why does this myth persist? 

• High Cost of Healthcare 

According to available data, the country with the highest cost of treatment in the world is the United States. Americans spend more per capita on healthcare than any other developed nation. In 2023, this stood at $14,570 and easily proves that medical treatments are more expensive than in other countries.

• Limited Understanding of Student-Specific Plans

Many students who plan to travel to the USA for higher studies are unaware of student-specific plans. Even some counselors do not know much about affordable plans for international students. They only know about domestic insurance plans that Americans who are there on a work visa or live there purchase. Those plans are indeed quite expensive by Indian standards. But these plans are not meant for students. 

• Costly University-Provided Plans

Afraid of making a mistake, many students opt for the university-provided plan. This is a huge mistake since some of these plans start at about $1,500 and can reach up to $4,000. However, university plans are not the only option that students have. It is one among a few ways to buy health insurance for foreign students. 

• Confusing Plan Terminology

Health insurance policies in the USA have very confusing terms. Deductibles, co-pays, co-insurance, preferred networks, etc., are enough to perplex anyone. This lack of understanding leads to the belief that the plans are complex and very expensive.

What is the reality? 

The reality is quite different. Highly affordable health insurance plans do exist for international students in the USA. There are numerous insurance providers who offer health insurance plans for international students at a highly competitive rate. 

How are they cheaper than domestic plans? Students are usually a young demographic and less likely to fall ill. This makes many student insurance options in the USA very cheap. 

There is one more factor. You have to reconsider what is expensive. A $500 health insurance cost for a 22-year-old would be a very large premium in India. But when you study abroad, it is a part of your overall expenses. While an INR 45,000 annual premium is extremely steep by Indian insurance standards, it is very affordable by USA standards. 

Myth 2: Affordable Plans Don’t Provide Comprehensive Coverage

There is another myth surrounding health plans for international students. If the plan is affordable, it cannot cover what is needed. When a student needs medical care, they find that coverage is denied on some grounds. Otherwise, between deductible and out-of-pocket expenditure, a substantial sum has to be forked out. 

Why does this myth persist? 

• “Cheap” Equals “Low Quality”

At the outset, let us state categorically that this is untrue. An affordable health insurance plan for an international student does not mean it skimps on coverage. Cheap does not translate to low quality. 

• Focus on Price over Value

Education at a university in the USA costs lakhs of rupees. Naturally, most students are budget-conscious. They might solely focus on choosing an insurance product that costs the least without any understanding of the terms and conditions. Such a plan might have higher deductibles and actually turn out to be far less affordable in the long run. 

• Misunderstanding of “Comprehensive”

You have to buy a comprehensive health insurance policy for your safety. A student might misinterpret the word comprehensive. A policy with all the bells and whistles might cost considerably more. Dental care and chronic diseases might cost considerably more. A student with healthy teeth and no chronic diseases like diabetes or asthma doesn’t need to sign up for these conditions. 

What is the reality? 

There are many reputed providers who understand that many international students are from India and other countries with low incomes. They design plans that are both pocket-friendly and offer sufficient coverage. 

Here is what you have to look for in such a plan:

• The plan has to state explicitly that it meets the requirements of student visas of different types. 
• The plan has to offer Essential Health Benefits as outlined by the Affordable Care Act:
  • Preventive care
  • Hospitalization
  • Emergency services
  • Mental health treatment
  • Maternity care
  • Prescription drugs
  • Pediatric services
  • Outpatient care
  • Rehabilitative services
  • Laboratory services

The key to buying an affordable health insurance plan for international students is to carefully compare plan benefits and buy the one that checks all the boxes. ##

Myth 3: Only US Citizens Qualify for Low-Cost Insurance Options

This myth stems from a wrong understanding of the US healthcare system and insurance products. 

Why does this myth persist? 

• Misunderstanding of Medicaid 

Though the USA doesn’t have universal health care as we find in Europe, Australia, Canada, and the UK, there is a government program known as Medicaid (not to be confused with Medicare, which is for those above 65). 

Medicaid is a public health insurance program that helps cover medical costs for people with limited income. It doesn’t offer a lot of options but does give some relief. Most importantly, it is only available to those with a social security number, meaning natural-born residents or those who have a Green Card. Since Medicaid is unavailable to foreign students, there is a persistent myth that only American citizens receive low-cost insurance. 

• Confusion with ACA Marketplace Plans

International students are not taxpayers in the US. They are ineligible for low-cost health insurance policies available from the ACA Marketplace. The Affordable Care Act and its provisions are solely meant for Americans with a social security number. It doesn’t apply to those who have student or work visas. 

What is the reality? 

Although students are unable to access the ACA Marketplace, it doesn’t mean they do not have access to ACA-compliant plans from insurance providers. This distinction is never understood fully by those wanting to buy health insurance for foreign students.

Insurance companies in the USA realize there is a large population of students from abroad. They have specific plans that are completely ACA-compliant and cheap. There is huge competition and this has kept the prices down. 

These international student plans are designed to meet the mandatory health insurance requirements for student visas. They perfectly ensure students comply with immigration regulations, university requirements, and state mandates. 

Breaking the myths: Affordable health insurance options for international students

Now that we have demolished all the myths, let us give you some concrete advice about the most affordable health insurance plans for foreign students. 

There are over 800 health insurance companies in the US. Here are some of the leading providers:

ISO Insurance

ISO is the world’s largest international student insurance manager. It was established in 1958 and has policies tailored for university requirements.

International Student Insurance (Student Secure)

ISI offers some of the most attractive plans designed especially for students on F1 and J1 visas and their dependents. ISI plans start as low as $29 per month. 

Cigna Global

Cigna Global is a division of the Cigna Group, a major global health insurance company. It specializes in providing international health insurance plans for international students and business travelers. 

Blue Cross Blue Shield 

Also known as BCBS, the company provides health care coverage in the United States. It was established in 1929 and is one of the most established players in the US health insurance market. 

Other important and established insurance companies include: 

• IMG Patriot Exchange 
• Kaiser Permanente 
• Compass Student Insurance 
• Allianz Care 

and many more. 

Here are a few affordable options for students’ health insurance plans:

Please note that these conditions might change at any time. Always refer to the provider’s website for up‑to‑date information.

Tips for finding cost-effective insurance plans without sacrificing benefits

If you are looking for a comprehensive yet affordable health insurance plan for foreign students, you have to know what to look for in a policy. 

Here are some key tips to help you secure affordable options for student health insurance: 

1. Assess Your Needs

You have to first evaluate what you need. If you are a healthy person in your 20s, there is no need for coverage for chronic disease. You can even sacrifice dental care. What you must have included is emergency medicine, ambulance cost, hospital treatment, and medication coverage. 

2. Compare Student Plans

There are multiple insurance players, such as ISO, ISI, and IMG, that specialize in student health insurance. These are low-cost options that cost as little as $450 per year. For about $1,000, you can have a lot of coverage. 

3. Review Policy Details

Don’t only pay attention to monthly premiums. Read the fine print and note down what is covered and which conditions are excluded. A plan with a slightly higher premium might offer lower deductibles. Thus, it would actually cost less if you needed medical care. 

4. Flexible Payment Options

Some providers have plans with a monthly subscription. Buying an annual plan gets you a discount. Compare the various prices and choose the one you are most comfortable with. Always ask about any student-specific discounts or promotional offers before buying.  

5. Consult Your University

Your school might have partnerships with insurers and offer plans at a cheap rate. Always ask for the details of the university-approved plan before you make a final decision. 

Always take adequate time to compare your options, and you will be able to buy an affordable insurance plan for international students. 

How to compare plans and make informed decisions

You must understand the different health insurance terms to make informed decisions about coverage. Here is a table with common health insurance terms and their brief descriptions to help you make a comparison between policies:

GradRight helps you secure affordable health insurance

Buying a health insurance policy for foreign students can indeed be a challenging task. You might end up choosing the wrong policy and riders. That is why GradRight offers you the easiest way to buy health insurance.

You will be able to compare the best plans from US-based insurance providers side by side and decide on the one that is perfectly suitable for you. There is a chance you could save up to INR 3 lakhs annually. Sign up today and start saving on health insurance. 

FAQ’s