Changes may be coming to student health insurance
The Student Health Advisory Committee, along with the Student Health and Wellness Center, are deciding what should be done with the current health insurance plan available to students through the university.
High premiums and low enrollment are the main reasons for a possible change in the current insurance policy, said A. J. Rounds, Associated Students of Utah State University graduate studies vice president and SHAC chairman.
There are currently two insurance programs available for students through insurance company First Student, said Noell Hansen health center insurance specialist. Each plan’s coverage is the same, but with different dollar amounts covered – $50,000 and $250,000.
The plans give general medical and accident coverage, maternity coverage, most prescriptions and there is no prescreening to be accepted, she said.
The policy does not cover yearly physical exams, well-baby checks, vision, dental and some pre-existing conditions. Undergraduate students taking six or more credits are eligible, as are graduate students with one ore more credit hours, she said.
Hansen said she feels these elements make the insurance policy enticing and helpful to students who otherwise would not be accepted into an insurance policy. The policy also includes maternity, which is a bonus to many students, she said.
“When you go downtown, you can buy a plan with or without maternity and it is usually more expensive with maternity and it usually comes with a $5,000 deductible,” Hansen said.
The university policy, on the other hand, has zero deductible.
However, the plan is comparatively more expensive than what a student can purchase downtown, Rounds said.
“It’s getting so expensive that it’s getting to where it’s just going to be unaffordable,” Hansen said.
About 800 students currently have university health insurance, and those who have it really need it, Rounds said. But even though those with insurance are using it in such small numbers. This causes the premium price to go up because the insurance company is paying more out on claims than it is making on premiums, he said.
Due to the small enrollment, many insurance companies are hesitant or won’t even make bids to the university, Rounds said. Last year, for example, USU approached 15 insurance companies, but only three responded with quotes.
There are three options, Rounds and Hansen said, to solve the insurance dilemma: changing the existing policy, dropping university insurance all together or the state moving toward mandatory insurance.
Both Rounds and Hansen say it’s unlikely that USU will drop its insurance all together and become just a reference source because many students rely on it. However, schools such as Weber State, Dixie College and Salt Lake Community College recently dropped their student insurance, Rounds said.
Mandatory insurance, before coming to school, has become more popular recently in Idaho and other states, but would have to be implemented on the state level, Hansen said.
USU has always tried to give students a good insurance program with low deductibles and few limitations, Hansen said. Rounds said he hopes to find a policy that will still provide good coverage, but be more reasonably priced for students.
“Is it in our best interest? Is there a better way we can do it? Is there a way to get as good of coverage on a cheaper level?” Rounds said.
Hansen said she worries because many students, mainly because of money constraints, do not make health insurance a priority. Hansen said it is heartbreaking to see a student no longer able to pursue academic goals because of an unexpected illness or accident made it financially impossible.
“It takes very little to have a very major medical bill,” Hansen said.
Every January the school may renew or change it’s insurance policy and the insurance company may do the same. SHAC and the health center will make their final decision next month.
SHAC holds meetings on the second Tuesday of every month. The meetings are open to the public and are held in the Health Center’s conference room during lunch. Those interested can simply show up to the meetings or contact Rounds at ajrounds2@hotmail.com to insure that there is enough lunch for everyone.
-hilaryi@cc.usu.edu