Key takeaways
- Student health plan costs are rising nationwide, with some regions facing sharper increases.
- Enrollment is declining. Improving outreach about plan benefits and affordability may encourage greater participation.
- Mental health programs are expanding, adapting to student needs through telehealth and peer support.
As student health insurance plans evolve, institutions are adapting to rising costs, shifting priorities, and changing enrollment patterns. The Fourth Annual Risk Strategies Student Health Plan Benchmarking Survey captures key insights from colleges and universities nationwide, offering a closer look at how schools are managing these challenges.
With costs continuing to increase, institutions are weighing plan adjustments while working to maintain affordability and access for students. Enrollment in student health plans has declined, raising concerns about student awareness and engagement. Mental health remains a priority, but schools are adapting their support strategies to balance evolving student needs with financial pressures. The survey findings highlight how institutions are refining their approach to student health benefits while maintaining a strong commitment to mental health.
Managing student health insurance plan costs in 2025
For the fourth consecutive year, managing student health plan costs remains the top priority for nearly 90% of institutions. Cost trends for student plans align with broader healthcare projections, with national estimates anticipating increases between 6% and 9% in 2025.
In 2024, student health plan costs rose by 7.1% on average, though regional disparities were significant. The East saw increases of 10% or more, while other regions experienced more moderate hikes of 5% or less. These differences reflect how regional market dynamics and healthcare costs shape student plan expenses.
Despite rising costs, student health insurance continues to prioritize accessibility, affordability, and consistent benefits. Student health plan stability over the past three years has allowed colleges to avoid cost-shifting measures like high-deductible plans, common in employer-sponsored programs. Higher education institutions remain committed to providing low out-of-pocket costs and essential services, ensuring equitable healthcare access for all students.
Communication gaps and declines in plan enrollment
Average enrollment in student health plans declined from 29% in 2023 to 24% in 2024. While the waiver/opt-out process remains the most common enrollment method, changes in verification practices may be affecting participation. The percentage of schools verifying waivers increased to 68% (up from 62%), but the number verifying 100% of waivers dropped from 85% to 74%.
A key challenge continues to be effectively communicating the value of student health plans. Though 85% of schools identified student communication as a top priority, many struggle to engage students who do not see immediate value in coverage. Improving outreach strategies, clarifying plan benefits, and emphasizing affordability may encourage greater enrollment.
Mental health support and wellness initiatives
Mental health remains an important focus, though it ranked fourth nationally (76%) — lower than in previous years. It remains a leading priority for small schools (88%) and institutions in the East (91%). This suggests that while institutions have made progress in expanding mental health resources, there are still areas for improvement.
Key initiatives gaining traction include:
- Expanded telehealth and virtual therapy options
- Peer-to-peer support programs
- Tiered care models that guide students to the appropriate level of support
More schools than ever (89% in 2024, up from 74% in 2023) now offer wellness programs, though smaller institutions face resource constraints. Many are addressing this challenge by forming partnerships with local providers to expand student access to wellness services.
Cost-shifting and benefit adjustments
To address rising costs, 32% of schools adjusted medical benefits, and 18% modified prescription drug coverage. The most common changes included:
- Higher copays and deductibles, with the average deductible increasing from $300 to $360
- Shifts from copays to coinsurance for specialty drugs, rising from 12% to 27%
- Increased administrative fees, now applied by 61% of schools, up from 52% last year
These adjustments reflect a balancing act between maintaining affordability and ensuring plan sustainability.
The growing challenge of coverage gaps
Fewer schools are offering continued coverage for students on leave or after graduation. The percentage of institutions providing leave of absence coverage dropped to 21% (from 30%), while post-graduation coverage declined to 20% (from 31%). This trend raises concerns about coverage gaps for students transitioning out of school who may struggle to secure affordable health insurance.
Trends and considerations for 2025
As institutions navigate 2025, balancing affordability and coverage quality remains a challenge. Rising costs, student expectations, and an ever-changing healthcare landscape are shaping decision-making. Schools evaluating their health plans are considering adjustments in waiver verification processes, outreach efforts, and cost-containment measures to maintain financial sustainability while supporting student health needs. Market trends suggest continued pressure on health plan costs, making adaptability important for institutions aiming to meet student healthcare needs while managing expenses. Ongoing discussions around mental health support, wellness initiatives, and enrollment strategies will influence how student health plans evolve throughout the year.
Get more insights into U.S. student health insurance trends
The Fourth Annual Risk Strategies Student Health Plan Benchmarking Survey examines the state of student health insurance plans across the U.S. and highlights the need for innovative strategies.
Access the full survey results
Want to learn more?
Find Elizabeth Marks on LinkedIn.
Connect with the Risk Strategies Education team at [email protected].
The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.
