Paying For Insurance Twice? Managing the family-to-college insurance transition.

<p>Just wondering how others have handled this... or if everyone else but me saw the trap waiting to be sprung.</p>

<p>My kid just headed off to college this Fall. His college requires students to have health insurance, and in fact they provide it, unless you 'waive out'. But the plan they provide is better than mine at work, so in July I decided to switch my son over to theirs, and thus did not send the waiver. I heard nothing else from the college or their insurer, other than an email in August along the lines of "last chance... either waive out or be automatically enrolled in our insurance plan". I was sort of expecting some kind of positive confirmation that my son was enrolled, and must admit that at the time I did not fully appreciate the rigid time constraints of the insurance industry. Can you see where this is going?</p>

<p>In mid-September, an email from the college's insurer arrived with a "welcome to your health plan" message, and a link to my son's insurance ID card. This was the confirmation that I had been waiting for, that he was in fact accepted and insured, but when we clicked the link to the card... the Effective Date for coverage was August 1st... 45 days earlier!</p>

<p>The insurance industry nearly universally requires less-than-30-day notice after a "qualifying event" to change status, even to withdraw from a plan, so by mid-September, my employer's insurance would no longer take him off their plan. And for sure he's on the college's plan. So as a result, he'll have insurance from both my employer AND his college for the coming year, and we'll be spending a couple of thousand bucks for a service (my employer's insurance) that we don't want and won't use.</p>

<p>I've spoken at length to both the college and their insurer, and their position is that by not submitting the waiver, I should have assumed that my son was covered by their plan, as their emails stated. I should have withdrawn him from my plan at that point. If I needed proof of his "qualifying event", I could have pro-actively called or written them, and they would have been willing to provide a written statement. </p>

<p>My position, I guess (I'm still coming to terms with all of this), is that the college/insurer should have automatically confirmed the student's insured status once it took effect. I can't think of any other important transaction that I've been party to, that is not completed by a receipt announcing that payment has been made and accepted. And in the case of things like insurance, where denial-of-coverage nightmares abound, that the insured has been accepted for coverage.</p>

<p>I also feel that it wouldn't have killed the Dean's Office at the college, which manages the insurance relationship and <em>should</em> provide the warm-and-fuzzy interface to the insurance company, to have sent a clearer message to newbie parents of entering students. Something along the lines of "check with your existing insurance... after enrolling in our plan, you may only have 30 days to withdraw from yours". Hardly mandatory, but it would've been a nice touch and easy to do... something befitting of their Top-10 status among LACs in this country. </p>

<p>But mostly... I'm just annoyed to have walked into this trap. I didn't see it coming, and I've never seen anything about it on all of the dozens of "prepare your kid for college" checklists that I bombarded myself with last year. Has anyone else run into this issue? Or am I the last parent in North America to realize how fraught and tricky it is to deal with the insurance industry?</p>

<p>Hopefully, in addition to being educational for me, my experience can help others avoid a similar situation in the future. It is apparently assumed that you will be pro-active about getting proof of your kid's new insurance through their college. Don't wait for proof to arrive. The insurance industry measures their windows of opportunity to the minute.</p>

<p>Thanks for listening!</p>

<p>Are you really sure their plan is better? Usually the college plans are pretty cheap and pretty bad. Free student health visits but then after that, if anything big happens, very little coverage.</p>

<p>I’ll assume he is your only child, or it wouldn’t matter if he was on your plan or not?</p>

<p>Also - when he started college (= student status) would likely be a qualifying event too, as was when he was enrolled in new coverage. </p>

<p>I do not think that the college is where to go, I think you need to go to your employer and explain it. I know that in certain cases, you have more than 30 days to add a dependent, so maybe you can get a waiver of that from your employer-based health insurance. </p>

<p>Some companies contribute MORE to health insurance for families than for single employees, so your employer might be gung ho to get your kid off of your health plan.</p>

<p>My kid’s school has similar policy - submit waiver or you are enrolled. This year since D2 was studying abroad I didn’t bother to submit waiver, in Sep they sent us D2’s insurance card back dated to mid Aug. But with one phone call to the health center we were able to submit a waiver. </p>

<p>When is your employer’s open enrollment period? You may be able to drop him starting Jan 1.</p>

<p>I told my son to submit the waiver, but he didn’t this year. The brochure was sent to our home, which was my clue. He then submitted the waiver (fortunately it was a few days before the final date waiver could be submitted), and they took the insurance off his bill. This is something the college explained to both students and parents at orientation, so there were no surprises in our case. I have heard of people just forgetting to waive, and winding up paying for both for a year. </p>

<p>We found with one kid that staying on our local insurance would have made nearly anything at college including their health services out of network. But I completely agree that insurance companies make things so opaque it’s very hard to know what the rules are.</p>

<p>I sympathize with the OP. My S has to be on the college insurance plan, as we (parents) live overseas and have no US insurance. But I remember that at the beginning of his freshman year, it was difficult to get info on just when his coverage started, how to submit claims, how to get prescriptions, etc. The school never sent him anything with instructions. I had to dig and make several calls to even find out who the insurer was. </p>

<p>Although, once we found out the info and figured out how to file claims, it has turned out to be pretty good coverage. The only annoying part is that we’re required to pay for prescriptions (S has chronic conditions) and then get reimbursed. I had to train S to hang on to receipts. </p>