The low enrollment in UO’s domestic health insurance plan has contributed to higher premium rates for students to get insured. In an effort to keep their plan alive, the Health Center hopes to make their voluntary health insurance policy more attractive for domestic students, though they are also considering mandatory student participation in UO’s insurance plan or in a different health plan with equivalent coverage.
“We are teetering on that edge right now,” Executive Director for the Health Center Mike Eyster said. “Our voluntary policy may not continue to be viable because we have so few subscribers, so few policyholders.”
Many colleges in the nation, like Northeastern University, already require their students to have health coverage. While the UO requires this for international students, it is currently voluntary for domestic students. Only 150 out 24,000 students have enrolled in UO’s domestic student insurance plan.
The annual rate for UO’s health insurance plan offered to domestic students continues to increase. From 2008 to 2010, Aetna, the insurance provider at the UO, increased its rates from $1,047 to $2,421, and is now priced at $3,264 per year, or about $1,089 per term, excluding summer — over doubling the price in the last six years.
As the price of the plan goes up, there is a tendency for primary users to only be the people who are managing an expensive chronic illness. This leads the insurance company to raise rates again the following year. Eventually the plan is priced out of the market, and since few insurance companies will compete for the business of a person with a pre-existing medical condition, those who critically need the coverage, are left without it.
“Voluntary insurance plans can enter a death spiral and it appears that this is what is occurring with ours,” Eyster said.
The rate for the insurance policy offered to international students is $388 per term. While some international students have insurance through a different provider, a significant amount are enrolled in the university’s plan. Having a larger pool of subscribers helps to keep premium costs low.
At least 20 percent of UO students are uninsured or under-insured. Eyster has seen many students endure a serious medical problem and be unable to pay for both school and their healthcare, eventually having to choose between the two. Their goal is to figure out a way that every student will have access to medical care and therefore, not run the risk of dropping out of school because of the cost of a medical problem.
“When you think of college you mainly think about academics,” Kelli Shelton said. “But it’s also important for students to go to the doctor and seek medical attention so they can be healthy to attend class.”
According to Shelton, the Health Center is in the beginning stages of examining the possible policy change. They are hoping to gain more insight in the spring when they sit-down with the insurance provider.
“Well part of what is making this complicated is that we don’t know exactly what all the provisions of the Affordable Care Act are just yet,” Eyster said. “So as those become more evident we will try to integrate whatever plan we with the [ACA] so that it would provide maximum value to students.”
Since the Affordable Care Act was signed in 2010, its major provisions will come into effect in less than three months. Through this act individuals will now have guaranteed health coverage despite any pre-existing conditions. It will also end lifetime limits, let children stay on their parents’ plan up until they are 26 years old, and require insurers to use at least 80 cents per dollar on health services instead of administrative costs.
“It used to be that the plan didn’t have the same benefits so it was hard to really compare how you would get the best bang for your buck,” Cover Oregon Governance Committee member Chris Wig said. “Now it’s an apples to apples comparison.”
Earlier this month, individuals could start shopping and comparing plans and prices on the online Health Insurance Marketplace known as Cover Oregon, which is set up for the state. People can now browse through the offered plans, as well as apply for financial assistance. There are four factors that will determine price of insurance: age, family contribution, your geographic location and whether or not you smoke.
Wig advises students to look at a plan’s provider network when choosing their health plan. For students with a lack of transportation, finding doctors nearby is essential.
“It’s really kind of a game change in the insurance industry. It gives young people a lot of options,” Wig said.