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Mandatory health insurance, increasing premiums — students feeling the pinch
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Many Boise State students who in the past chose to opt out of
the Student Health Insurance Plan are finding themselves hit with a
double whammy this year. Beginning this semester, SHIP enrollment
is mandatory for full-time students due to a policy recently
enacted by the Idaho State Board of Education. Under the police,
only students able to prove they carry comparable health coverage
may waive Boise State’s health insurance.
In addition to the mandate, SHIP premiums rose by about 50
percent since last year—up from $243.50 to $369.50 per
semester – now averaging out to $92 per month.
Ferd Schlapper, executive director of Health Wellness and
Counseling Services said the new mandate plus recent premium
increases reflect underwriters’ concern for
cost-effectiveness.
“Voluntary plans don’t work. Statistics show that
only 2 to 8 percent will enroll in a voluntary plan. Those people
are ones who know they’ll use it and that creates a high risk
pool,” Schlapper said.
Boise State’s former SHIP underwriter North Carolina
Mutual, like many underwriting firms in the nation, is withdrawing
from the voluntary student health insurance business due to low
participation and high risk. In the last two years, the former SHIP
underwriter posted a 90 percent loss ratio on premiums. Usually
about 70 percent of premiums go toward claims in the health
insurance industry.
Mandatory participation will create a lower risk pool, thus
making the contract more desirable to health insurance
underwriters. According to Schlapper, competitive bidding from
underwriters will result in lower premiums and more comprehensive
coverage.
While SHIP covers emergency health care and referral, Health
Wellness and Counseling Services provide primary care on campus.
This fall, HWC Services added to primary care services on campus
with one more full-time physician and a part-time nutritionist.
Last year HWC expanded to include a variety of services ranging
from massage therapy coverage to needle-free HIV testing to
seminars on various health-related topics.
Students pay a $25 fee per semester for primary care from the
Health Center. Funding for Wellness and Counseling Services comes
from the state.
The increase in on-campus primary care reflects a nation-wide
trend in the way student health care is done, as it’s more
cost-effective to provide more primary care services on campus than
to refer patients to community clinics. Schlapper said another
possibility for making student health insurance more cost-effective
would be the establishment of an in-house health insurance plan for
students, funded by students, that would essentially cut out the
middleman.
“Students would have more say in where their money goes.
There could be a SHIP advisory committee where students get to be
involved in the details of the plan,” Schlapper said.
“They could decide to pay lower premiums or expand their
coverage.”
HWC Services estimates that approximately 75-80 percent of BSU
students will utilize the services at some point during their four
years of attendance. About 50 percent of students utilize primary
care on a regular basis. Last year, HWC Services logged 14,000
visits.
Jessica Adams
Managing Editor
The Arbiter