As a UC Berkeley student, one of the first major decisions you’ll make each year is whether to waive UC Berkeley Student Health Insurance Plan (SHIP) and opt for your own private insurance plan or keep SHIP as your primary insurance. With rising health insurance costs, this choice can have major financial implications for students and their families. Below we’ll analyze the key factors to consider when deciding if SHIP is worth it for you.
What is SHIP?
SHIP stands for Student Health Insurance Plan and is a comprehensive health insurance plan designed specifically for UC Berkeley students. It’s administered by Anthem Blue Cross on behalf of UC Berkeley and provides coverage for medical care, mental health services, preventive care, prescriptions, vision, and dental. Some key facts about SHIP:
- SHIP is accepted at the Tang Center on campus as well as Anthem Blue Cross in-network providers throughout California.
- Premiums are charged directly to your Cal student account and are often lower than comparable private plans.
- SHIP meets the requirements under the Affordable Care Act for minimum essential coverage.
- Coverage periods run from August 1 through July 31 each year.
- Dependent coverage is available for legal spouses/domestic partners and children under age 26.
What does SHIP cover?
SHIP provides comprehensive medical and prescription drug coverage, with most care covered at 100% when you use UC Berkeley student health services. Here’s an overview of what’s included:
Medical services
- Primary care, specialist visits, and hospitalization
- X-rays, lab tests, and imaging
- Physical therapy, chiropractic care, acupuncture
- Emergency room services
- Surgery and anesthesia
- Pregnancy, maternity, and newborn care
Mental health services
- Counseling and psychiatry
- Group therapy
- Crisis intervention
- Psychological testing
Prescription drugs
- Generic drugs: $5 copay at UC pharmacies, $10 copay at retail pharmacies
- Preferred brand drugs: $25 copay
- Non-preferred brand drugs: $40 copay
- Specialty drugs: 30% coinsurance up to $200 copay max per script
Vision care
- Routine eye exam with optometrist: $10 copay
- $120 allowance for eyeglasses or contacts annually
Dental care
- Preventive exams, cleanings, x-rays: $0 copay
- Basic services like fillings, simple extractions: 20% coinsurance after deductible
- $1,000 annual benefit limit
Review the complete schedule of benefits for more details on coverage amounts and exclusions.
What are the costs for SHIP?
SHIP premiums are charged on a semesterly basis. Here are the costs for the 2022-2023 academic year:
| Coverage Type | Fall Semester | Spring Semester |
|---|---|---|
| Undergraduate | $1,103 | $1,566 |
| Graduate | $1,103 | $1,566 |
| Spouse/Domestic Partner* | $1,624 | $2,294 |
| Child(ren)* | $1,103 | $1,566 |
*A student must be enrolled in SHIP to add a spouse/domestic partner or child
These rates are significantly lower compared to most individual plans available through Covered California or directly from health insurance companies. SHIP is able to offer lower premiums by spreading the risk across UC Berkeley’s large pool of students.
What are the pros of choosing SHIP?
There are several advantages that make SHIP an appealing choice for many UC Berkeley students:
Comprehensive on-campus care
The Tang Center provides primary care, counseling, lab testing, physical therapy, optometry, and pharmacy services right on campus. Almost all services at Tang are covered at 100% with no deductible when using SHIP, saving you money.
Large network of providers
In addition to Tang, the Anthem Blue Cross network includes major medical centers like UC San Francisco Medical Center, John Muir Health, and Sutter Health. So whether you need to see a specialist or visit an urgent care clinic, SHIP gives you access to care throughout the Bay Area and California.
Low deductible
SHIP features a $300 deductible for in-network care, compared to an average deductible of over $4,500 for Covered California plans in 2022. This lower deductible helps reduce your out-of-pocket medical costs.
Covers prescriptions
Many health insurance plans these days require separate prescription coverage at additional cost. SHIP bundles prescription benefits with medical coverage for added savings.
Travel and emergency coverage
SHIP provides coverage for urgent and emergency care throughout the US and internationally. So if you get sick or injured while traveling, your medical care will be covered.
Covers medical evacuation and repatriation
If you experience a medical emergency while studying abroad, SHIP will cover the transportation costs of bringing you home for treatment. This is an expensive benefit that most plans don’t include.
What are the cons of choosing SHIP?
SHIP also has some potential drawbacks to consider:
Limited provider network outside California
The Anthem Blue Cross PPO network has over 50,000 providers within California. However, coverage is more limited in other states, so SHIP may not be the best option if you live outside California.
Vision and dental benefits are basic
SHIP includes routine eye exams and discounts on eyeglasses, but does not cover the full cost of glasses or contacts. The dental benefit is also limited, with a $1,000 annual maximum. You may want to enroll in a separate vision and dental plan.
No out-of-network coverage
SHIP is a PPO plan, so services from out-of-network doctors and hospitals are not covered except for medical emergencies. If you want the flexibility to see out-of-network providers, you’ll need to purchase a different plan.
Medi-Cal not accepted
SHIP cannot be used in conjunction with Medi-Cal coverage. So if you are eligible for Medi-Cal benefits in California, SHIP would not be a good option.
When can I waive SHIP coverage?
You are eligible to waive SHIP if you have your own health insurance plan that meets the university’s waiver criteria, including:
- Provides unlimited lifetime benefits
- Covers inpatient and outpatient care for mental health disorders
- Covers medical care in the Bay Area, not just your home region
- Cannot be a Medi-Cal, Medicaid, Medicare, or Tricare plan
When waiving SHIP, you’ll need to provide details about your own insurance plan. The deadline for submitting SHIP waiver requests is usually in mid-September for the Fall semester and January 31st for new Spring students. Visit the UC SHIP office for specific dates.
How does SHIP compare to Covered California plans?
Covered California is the state’s health insurance marketplace where you can shop for Affordable Care Act-compliant plans from private insurers. Here’s how key aspects of SHIP compare to the average Covered California plan:
| SHIP | Covered CA Plan | |
|---|---|---|
| Annual Premium | $2,669 (for undergrad rate) | $4,000 average forindividual |
| Deductible | $300 | $4,554 average |
| Doctor Visit Costs | $0 for Tang Center $20 copay otherwise |
50% coinsurance after deductible |
| Annual OOP Max | $6,350 | $8,750 average |
| Prescription Drug Coverage | Included | Separate plan required |
While premiums are moderately higher for SHIP, you’re likely to save money overall due to much lower deductibles, flat-rate copays for doctor visits and prescriptions instead of coinsurance, access to campus health services, and an annual cap on your out-of-pocket costs.
Should I choose SHIP or waive for private insurance?
Here are some key factors to weigh when deciding between SHIP and your own health insurance plan:
How much will it cost?
Add up the total premiums, deductibles, and your expected healthcare costs for each plan. SHIP often costs less overall, but do the math for your particular situation.
Is your current plan PPO or HMO?
SHIP uses Anthem’s PPO network. If your own plan is an HMO, your access to providers will be restricted if you live outside that HMO’s service area.
Will you use campus health services?
Frequent Tang Center users get the most value from SHIP’s coverage of on-campus care. Waiving SHIP only makes financial sense if you won’t use student health services.
How comprehensive are your current benefits?
Make sure your private plan meets SHIP waiver criteria and has comparable coverage. SHIP covers essentials like mental health, emergency care, prescriptions, and medical evacuation.
Do you qualify for subsidies?
If your income is under 400% of the Federal Poverty Level, you may qualify for federal subsidies that lower your Covered California plan premiums to less than SHIP.
Conclusion
UC Berkeley SHIP is designed to provide affordable, high-quality medical coverage tailored to student needs. While SHIP offers comprehensive benefits on campus and through Anthem’s broad provider network, the plan does have some limitations compared to private insurance alternatives.
Waiving SHIP can make sense if you have access to employer group coverage under your parents’ plan, are eligible for government subsidies, or won’t use campus health services. However, SHIP is price competitive with individual plans on Covered California for many students.
Analyze your specific healthcare needs, compare all costs, and weigh the pros and cons before deciding whether to keep SHIP or waive. But for most UC Berkeley students who don’t have other coverage options, SHIP is a smart choice that balances robust coverage with budget-friendly premiums.
