Bloom added that these self-funded plans do generally offer good health coverage.

"I don't think you are seeing some kind of conspiracy in the way that the statutes are written. These plans are very comprehensive," Bloom said. "It doesn't mean it's not a tragedy if a student is in that situation where they come up against the caps, but in the grand scheme of things, this is a very small percentage of students that this impacts. You are talking about a fly on an elephant here."

But it's big issue to Rahder, who cannot walk at the moment because she can't afford the treatment she needs without insurance.

For now, she said she may have found an alternative insurance. It's more expensive, but her mom will help with the bills. Once she gets the treatment and can walk again, she said she will be out there protesting so other students won't experience what she did.

"I mean, what is health insurance for if not to catch you in those rare cases when you do get sick?" she asked. "This seems outrageous and is really truly mind-boggling."