TL;DR: Most funded grad students are automatically enrolled in a university Student Health Insurance Plan (SHIP), often at no or low direct cost when funded. Coverage quality varies enormously between schools — the details worth checking before you need care are the deductible, whether dependents can be added, out-of-network coverage while traveling for research or conferences, and mental health/counseling access.
The basic setup at most schools
Most universities offer a student health plan, and many require students to have health coverage, either through that plan or another one. Most funded PhD programs cover the premium (or most of it) for the student as part of the funding package. This is one of the more valuable, and least advertised, parts of a stipend — a comparable plan purchased individually could cost several thousand dollars a year.
Questions worth answering before you need to use the plan
Is the premium actually covered, or partially covered? Some programs cover 100% of the student premium but not dependent coverage (spouse, children) — a real cost if you have a family, often running several thousand dollars a year extra.
What's the deductible and out-of-pocket maximum? Student health plans range widely — some have very low deductibles designed for routine and preventive care, others function more like a standard high-deductible plan. Check this before assuming "student insurance" means low cost at the point of care.
Does it cover care outside the university town? If your research involves fieldwork, conferences, or travel, confirm whether the plan has meaningful out-of-network or nationwide coverage, or if it's designed primarily around the campus health center and local network.
What mental health and counseling coverage exists, separate from the free campus counseling center? Many campus counseling centers offer a limited number of free sessions per year; beyond that, coverage depends on the insurance plan itself, not the counseling center.
Is there a waiver option if you already have other coverage (a spouse's employer plan, a parent's plan if age-eligible, a partner's plan)? Waiving the student plan can save money if you already have adequate coverage — but check the waiver deadline, which is often narrow and early in the semester.
Timing traps that catch people off guard
- Enrollment/waiver deadlines are often in the first two weeks of the semester and don't reopen until the next enrollment period if missed
- Coverage gaps between semesters (over winter or summer break) exist at some schools if you're not enrolled in classes or employed during that window — worth checking explicitly rather than assuming continuous coverage
- Dependent enrollment deadlines are often separate from your own enrollment deadline and easy to miss if you're adding a partner or child mid-program (e.g., after a marriage or birth)
A one-time task that pays off
In your first semester, request the actual Summary of Benefits and Coverage (SBC) document for your specific plan — not just the marketing page — and read the deductible, copay, and out-of-network sections once. It's a 15-minute task that prevents a much worse surprise the first time you actually need care.