GAO: Some Colleges Put Tight Limits On Health Benefits

Typical student plans cost about $500 to $999 per year, and 60% limited coverage to a maximum of $2,500 to $50,000 per condition per lifetime.

Many of the plans also imposed tight “internal benefit limits,” such as a limit of $150 per condition per lifetime on use of ambulance services, or a $1,200 per condition per lifetime limit on outpatient services, Dicken writes.

“Low internal benefit limits can make it highly unlikely for enrollees’ coverage to meet the plan’s maximum benefit amount,” Dicken writes.

One plan reviewed had a maximum benefit of $50,000 per condition per lifetime and an internal benefit limit of $1,200 per condition per lifetime for all outpatient benefits, including coverage for emergency services and diagnostic services, Dicken writes.

“Under this plan, students who require extensive outpatient services to treat one condition (such as a chronic condition or serious illness like cancer) would be unlikely to ever meet the $50,000 per condition per lifetime maximum benefit amount,” Dicken writes.