How Does Health Care Reform Impact College Students?

By David Replogle, University of Virginia

After much heated debate, back-and-forth bickering and political concessions, the Obama administration and Congress finally reached a consensus that allowed for the passing of a sweeping health care reform bill last March. So, how will this bill affect you? We break it down. …

1. Health Care Reform Keeps Young Adults Insured Longer
Young adults form a huge chunk of uninsured Americans, largely because they’re kicked off their parents’ plans right after college (or even sooner for those who aren’t enrolled full time). The Department of Health and Human Services reports that around 30 percent of people 26 and younger lack health insurance.

Kiss that bummer statistic goodbye on Sept. 23, 2010, when the law extends health insurance coverage to policyholders’ children up to age 26 -- no matter if the kids attend college, live at home or are listed as dependents. Many insurers plan to offer coverage ahead of the September deadline, and HHS reports that over a million 20-somethings will be able to remain on a parent’s health plan in 2011.

“I had never really considered the gravity of getting taken off of my parents’ insurance plan before this bill got passed,” says Katelynn McFarland, rising senior at the University of Virginia. “It’s a relief that I won’t have to worry about it for a few more years.”

2. Health Care Reform Reduces Discrimination
There’s more good news for the under-26 age group: Under the new law, insurers are now banned from denying health coverage based on age -- which means not having to deal with jacked-up costs or restricted coverage.

“The bill’s provisions against age discrimination are helpful to the elderly, of course, but they help the young population even more,” says a registered nurse at UVA’s Elson Student Health Center. “This is the group that isn’t as familiar with the complicated insurance system and can get easily ripped off by companies. This bill should bring a definitive stop to that.”

3. Health Care Reform Takes Some Stress off Job Seekers
Face it, the current job market is the pits. Economic wounds will take time to heal, and students at both undergraduate and graduate levels are struggling to find jobs. But since young adults can now stay on parents’ plans longer, there isn’t nearly as much pressure on the jobless.

“I wish the bill had been passed sooner,” says Hillary Jackson, who graduated from Lynchburg College in 2005. “The first couple of years after college are stressful for everyone, and for a lot of reasons. Trying to find a solid insurance plan is just one of them."

For those lucky enough to nail down a job, companies with at least 50 employees are now required to provide health insurance to all workers. And employees earning $88,000 or less a year will be eligible to receive generous subsidies.

4. Health Care Reform Could Create More Jobs
The bill offers tax credits to small businesses with health insurance, in addition to reducing labor costs within those companies. However, the changes are modest at best. “We’d all love to see the effects of it through rose-colored lenses,” says Eric Yaverbaum, education expert and author of Life’s Little College Admissions Insights, “but in reality, the economic situation is bad for everyone. The new generation of college graduates is, unfortunately, a bit unlucky.”

While health care reform might mean more job openings in medical-related fields, Yaverbaum stresses that students should follow their passion. Instead of switching your major, stick with your gut. “If you’re asking, ‘Should I change my career path?’ in light of the new health care bill, I think it’s too early to tell what effects it will have. It will take years to know the repercussions. If you’re not interested in the health care industry, then don’t feel the need to make any big-time adjustments. Do what you love."

5. Health Care Reform Revolutionizes the Student Loan System … Huh?
That’s right. Even though the health care reform bill essentially has nothing to do with education, it will nonetheless dramatically change the way Americans pay for college education. Taking advantage of the health care bill to highlight another one of President Obama’s domestic platforms, House Democrats tacked on an amendment that eliminates the middleman -- private bankers -- in the student loan system. Now, students will borrow directly from the government, saving taxpayers and the feds $61 billion over the next decade.

The savings will be used to help community colleges and universities with heavy minority populations, and more than half of that amount -- $36 billion -- will be awarded to the foundering federal Pell Grant program, which thousands of low-income students use to finance their college education.

Bobby Paulini, a rising junior at Shepherd University, doesn’t get why these changes were included in a bill concerning health care: “The two issues are completely different, and the amendments should have been done separately. It seems like political theater to me.”

But White House officials are optimistic about the new provisions. In an interview with National Public Radio, Secretary of Education Arne Duncan said that the government is done with banks and is now investing in students.