International Student Insurance in US – Pros, Cost & requirements

Introduction: Why International Student Insurance in US Matters 

Studying in the United States is a dream for thousands of Indian students each year. But along with exciting opportunities come important responsibilities—one of the biggest being health insurance. Unlike in India, healthcare in the U.S. can be extremely expensive. A simple doctor visit may cost $150–$300, while a hospital stay can run into thousands of dollars.

That’s why almost every U.S. university requires international students to have health insurance. But here’s the catch: while most schools automatically enroll you in their own Student Health Insurance Plan (SHIP), you may also have the option to waive it and choose a plan that better suits your needs.

At Student Cover, we help students compare options, understand coverage, and get access to affordable and compliant international health insurance .

Do International Students Need Health Insurance in the US?

Federal Rules

• F-1 and M Visa Students: Not required by U.S. federal law to carry health insurance.
• J-1 Visa Students: Must have insurance that includes:
• $100,000 minimum coverage per accident or illness
• $25,000 for repatriation of remains
• $50,000 for emergency medical evacuation
• Deductible no more than $500 per condition

University Rules

Even if your visa doesn’t mandate insurance, most universities will. You’re usually:

• Automatically enrolled in the university’s SHIP (Student Health Insurance Plan), OR
• Allowed to waive the plan if you prove you have equivalent or better coverage.

Types of Health Insurance Options for International Students

1. University-Sponsored Student Health Insurance Plans (SHIPs)

Most U.S. colleges automatically enroll international students in SHIPs. These plans are:

• Comprehensive – covers doctor visits, hospital care, prescriptions, preventive services, and mental health.
• Easy to use – linked directly with your campus health center and nearby hospital networks.
• Accepted everywhere – always meet the university’s waiver requirements.

Cost of SHIP Plans:

• Typically between $2,000 and $7,000 per year.
• Example: Stanford SHIP ($8,232/year), University of Chicago ($1,855 /year).

Pros of SHIP:

• Convenient billing through the student account.
• Wide coverage, no hidden gaps.
• Meets all waiver rules by default.

Cons of SHIP:

• High cost compared to private options.
• May include benefits you don’t need.

2. Private Student Insurance Plans via Student Cover

While SHIPs are reliable, they are not always budget-friendly. This is where Student Cover helps.  Many students find that private or specialized student health insurance plans, such as student cover are more affordable than the university’s standard offering. Reasons include:  

We have tie-ups with:

• ISO (International Student Organization Insurance) – a trusted U.S.-based student insurance provider widely accepted by American universities.
• Bajaj Allianz – for India-issued health insurance policies that can meet U.S. waiver requirements in certain universities.

This allows us to:

• Offer multiple plan options in one place.
• Match university waiver requirements (like deductibles ≤ $500, coverage for mental health, evacuation, repatriation, etc.).
• Reduce costs while keeping coverage strong.

Instead of paying $6,000–$7,000 per year on a SHIP, many students save significantly by choosing a Student Cover-supported plan. Student Cover has own comprehensive international student insurance plans for US , covering all the requirements for  Insurance waiver.

What Coverage Should You Look For?

When waiving a university plan, your insurance must usually include:

• Minimum $50,000–$100,000 coverage per accident/illness
• Low deductible (≤ $500)
• Mental health coverage (inpatient & outpatient)
• Prescription drug coverage
• Maternity care (at least 80% in-network)
• Pre-existing conditions coverage (sometimes after waiting period)
• Emergency medical evacuation & repatriation ($50,000 / $25,000 minimum)

Student Experiences & Waiver Realities

• Some U.S. universities (especially in Massachusetts) only accept U.S.-filed, ACA-compliant plans. This means international policies may be rejected.
• Students in New York reported successfully using the Essential Plan (a state program) to waive university insurance at no or low cost.
• Others found their waiver rejected when using non-U.S. underwritten plans.

Key takeaway: Always confirm with your university’s health services which external plans they accept before applying for a waiver.

Pros and Cons: University Plan vs Student Cover Plan

Steps to Choose the Right Plan

• Check your university’s insurance policy – Do they allow waivers? What are the requirements?
• Compare SHIP vs Student Cover plans – Calculate total yearly cost and coverage differences.
• Ensure waiver compliance – Match deductible, evacuation, maternity, and mental health coverage.
• Apply for a waiver (if allowed) – Submit proof of coverage before the deadline.
• Keep records handy – Carry your insurance card and policy details once approved.

FAQs: International Student Insurance in the US

Q1: Can I waive my university insurance plan?

Yes, if your school allows it and your alternate plan meets their requirements. Always check deadlines and criteria.

Q2: What happens if I don’t buy health insurance?

You may face automatic enrollment in SHIP, high medical bills, and potential non-compliance with your school or visa requirements.

Q3: Which is better—SHIP or private insurance?

SHIP is more expensive but guaranteed acceptance. Private insurance Student Cover can save costs while still meeting coverage rules.

Q4: Does Student Cover provide U.S.-accepted plans?

Yes. With tie-ups like ISO and Bajaj Allianz, Student Cover offers plans designed to meet waiver requirements across U.S. universities.

Q5: How much does student health insurance cost in the U.S.?

• University SHIP: $2,000–$7,000/year
• Student Cover plans: $340–$2100/year, depending on coverage

Final Thoughts & Call-to-Action

Health insurance is not just a university requirement—it’s your safety net in a country with high healthcare costs. While SHIP plans are comprehensive, they’re expensive. With Student Cover, you get the best of both worlds: affordable, waiver-compliant coverage, plus guidance from experts who understand U.S. university rules.

Ready to secure your coverage? Contact Student Cover today to explore customized international student health insurance plans that fit your budget and university requirements.