Health Insurance Tips For College Students

In order to find out you if you need to purchase health insurance, you will have to research your parents' health care policy's rules and the rules of your state's Department of Insurance. (For more, see For Top-Notch Insurance Coverage, Compare Quotes.)

State Guidelines 
Depending on the individual state your parents reside in, your coverage could stop anywhere between ages 19 to 31. You can find this information on your home state's Department of Insurance website or by calling your state's Department of Insurance.

When researching, pay attention to whether rules are mandatory or left up to insurance companies. If you see the word "requires," this means health insurance companies within this state must follow this law. However, if you see "allows," this means the health insurance company has the ability to follow this rule if it chooses to do so. Anything not mentioned is left up to the individual insurance company. For example, if there isn't a state law about continuing coverage when you take a break from full-time status, then it may vary from company to company.

Differences Large and Small
Look for differentiations in what small and large businesses are allowed to do. For instance, according an American Health Insurance Plans (AHIP) briefing on dependent coverage, the state of Nebraska specifies coverage until 30 if the dependent child meets other requirements for large business employees, while the 23rd birthday is the cutoff point for small business employees.

In quite a few states, there are rules allowing parents to keep dependent, unmarried adult children on their plan up to varying ages as long as the children don't have their own health insurance yet. Check the insurance rules carefully. You may be surprised by how long you can extend coverage. (For more, see Five Insurance Policies Everyone Should Have.)

Michelle's Law
According to an American Health Insurance Plans (AHIP) briefing on dependent coverage, Michelle's Law allows, "full-time college students covered by a parent's health insurance plan to maintain their coverage for up to 12 months while taking a medical leave of absence from school." This law applies in all 50 states, but the leave of absence has to be deemed necessary and certified by a doctor.