Under a new policy, Michigan State University now requires all students to have health insurance. Those who didn't obtain a waiver based on existing coverage are automatically charged for a university-sponsored plan, which could cost students around $1500 per academic year.

The new rule caught MSU freshman Nick Farrington by surprise when he received an insurance card in the mail and was charged $940 by the university.

"I was completely clueless about it, I had no idea what it was," Farrington said.

Farrington is covered under his dad's healthcare plan but says he was unaware of the change in school policy and did not submit a waiver.

"For them to just assign and without me actually giving an answer and then forcing me to pay $940, I think that's a little ridiculous," Farrington said.

Since he is already insured, Farrington did eventually receive a refund, but complains the university did not give enough warning about the policy change.

University officials say they made this change for public health concerns and to stay in line with a national standard. They say most students come to MSU already with health coverage

MSU senior Jamie Brahce is covered under her dad's plan but also says she was unaware of the policy change and argues the university should not be mandating health coverage.

"I'm lucky enough to have health insurance through him [dad]. However, he didn't have a job for a while and I didn't have any health insurance...I don't think they should make that choice for me," Brahce said.

MSU says they are working on contacting those who do not have insurance and says students have until the end of February to submit proof of coverage and opt out of the university-sponsored plan.