In last month’s blog, we discussed the importance of carefully designing the waiver process for your international student group insurance plan. But once the process is in place, the next question is: who should manage it? A well-managed waiver process ensures that your international students are properly covered and that your institution’s group plan remains stable. The choice of who manages this process can greatly affect the overall efficiency of your plan and determine whose interests are prioritized.
The Challenge of a Hard Waiver
A hard waiver system, which requires international students to demonstrate that they have comparable insurance in order to opt out of the school’s plan, demands careful oversight and evaluation. Managing this process requires dedicated staff who are trained to review insurance policies and determine whether or not they meet the institution’s insurance requirements.
For many institutions, this can present a challenge. Evaluating foreign insurance policies is not a simple task. It requires:
-A deep understanding of insurance terms and benefits.
-The ability to verify whether a plan meets your school’s specific requirements.
-Time and manpower to properly evaluate every submission to make sure it’s reviewed thoroughly and consistently.
Given the complexity and the resource-intensive nature of this process, it might seem logical to offload this responsibility to an external partner, such as your insurance broker.
Should Your Insurance Broker Manage the Waiver?
At first glance, your insurance broker might seem like the perfect candidate to manage your school’s waiver process. Brokers have the insurance expertise and the capacity to assess which plans meet your school’s insurance standards. They can relieve your team from the burdensome task of reviewing numerous waivers and making sure that only qualified plans are accepted.
However, while brokers are skilled in handling insurance matters, there are potential downsides to consider:
1.-Conflicts of Interest – Brokers may not always have the best interest of your students in mind. Since brokers often benefit financially from enrolling more students in the school’s insurance plan, they could set waiver requirements so high that very few outside plans qualify. In some cases, they may focus on technicalities like regulatory filings rather than the actual coverage. As a result, students who have suitable insurance plans may still be forced onto the school’s plan unnecessarily.
2.-Denial of Plans for Non-Substantive Reasons – Some brokers may deny student waiver requests based on minor technicalities that have little to do with the quality of the insurance plan. While this might result in more students remaining on the school’s plan, it doesn’t necessarily make sure that students are receiving the best coverage for their individual needs. Denying waivers on technicalities can also lead to frustration for international students and increase the administrative burden on your team as students appeal decisions.
3.-Balancing Expertise and Student Well-Being – To make sure that your students’ best interests are prioritized, it’s important to find a balance between leveraging the expertise of your broker and maintaining institutional oversight. You may decide to keep the waiver process in-house or put processes in place that have clear oversight in the waiver review process.
A Middle Ground: A Hybrid Approach
For many schools, the ideal solution is a hybrid approach where brokers assist in the technical evaluation of plans, but final decisions are made by the school. This blends the grounded insurance expertise but the school remains in control of how students are served and protected.
Additionally, student education should be a priority in the waiver process. Many international students are unfamiliar with the complexities of the U.S. healthcare system and may not understand the full consequences of opting out of the school’s insurance plan. Educating students about the risks of underinsurance and the importance of comprehensive coverage is crucial. You may also choose to have a list of alternative plans that you know are good quality plans with reliable service which meet and exceed the insurance requirements set forth by your school.
Deciding who should manage your international student insurance waiver process is an important decision that affects the health and financial stability of both your international students and your institution. While brokers can offer valuable expertise, schools should continue to maintain oversight so that the process is student-centered and not driven solely by financial interests. By finding a balance between expert advice and institutional control, you can create a waiver process that protects your students and provides stability to your group insurance plan.
If you’re looking for assistance in designing a waiver process or exploring group insurance options, feel free to contact us for help or request a quote.
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