Students who have come to count on the Health Insurance Plan offered through University Health Services may have been a little surprised to see the jump in cost this year. A 78 percent jump. From last year’s annual cost of $556, this year interested students will have to pay $991 for the plan, which covers an aggregate maximum of ten thousand dollars.
“The company who provides our plan (Etna) felt that losses were very high last year, so the premiums went up,” said Jane Coolidge, Director of University Health and Counseling Services. “Insurance rates in Maine are especially high. Faculty costs are high as well. They (Etna) were originally asking for a per-person cost of $1028, but we talked it down.”
One reason that USM hasn’t been able to find a cheaper plan is the historically low volume of interested students. Many students are covered under their parents’ insurance, some get coverage through work, and many either do not want the plan or can’t afford it. Ten percent of the student body purchases university insurance-about 600 students on the USM campus-which, when used in conjunction with referrals from the Health Services office, offers copayment-free outpatient care and up to 80 percent coverage on inpatient care. Students who don’t get referred through University Health Services before seeing an outside care provider will be charged a $30 copayment.
Another reason for high premiums, according to Judy Ryan, vice President of Student Development, is that the self-selecting nature of USM insurance plan leads to high system -wide loss ratios. Simply put, only those who plan on heavily using their coverage buy the plan, leading to a high use rate and more money out of the plan.
“The national average for loss ratio on these student insurance plans is 85 percent,” said Ryan. “The U Maine system runs close to 100 percent.”
Ryan added that schools who impose involuntary coverage, in which the entire student body is automatically charged and insured, have much cheaper rates. With a bigger, healthier pool of clients, the costs go down. The U Maine system opted not to take this route.
Prescriptions are not covered by the Etna plan, although there is a $100 allotment per year for use at University Health Services, which carries many of the most common prescription drugs such as antibiotics and allergy medications.
“It’s a good plan,” said Coolidge. “It’s not a Cadillac plan, but we kept most of the benefits in place. It’s quite a risk to not have insurance, and our broker assured us that the students won’t be able to find a better value anywhere.”
The rise in cost comes as an especially stinging blow to departments whose students are required to carry the policy, such as the department of Nursing. In an attempt to help students manage this, the University is offering students the opportunity to purchase each semester’s coverage separately, with $371 due in the fall and $620 in the spring, to cover the spring and summer semesters.
“My understanding is that if student’s financial aid money hasn’t been maxed it can be used towards the cost of insurance,” said Jane Kirschling, Dean of the College of Nursing. “I think it’s unfortunate that the cost is as high as it is, but our department just doesn’t have enough money to do anything to help students defray it.”
For students who aren’t required to use the policy, and who can’t field the expense, the $40 mandatory student health fee provides excellent and inexpensive basic medical care, though not the comfort of having coverage in the event of a serious illness. Free unlimited office visits are included, and lab tests, immunizations, allergy injections, and common medications are offered at a greatly reduced rate. Birth control pills, for example, cost $10 per pack, compared to a $30 per pack market value. Condoms and some over-the-counter medications are provided free of charge.
“The medications we sell are cheaper,” said Coolidge. “Just as good, but cheaper. We know students don’t have a ton of money.”
Another options for students with very low income is Maine Medical Center’s Blue Card Uncompensated Care Insurance program, a plan free to individuals making less than $12,885 per year. It covers all outpatient medical care at the hospital, with the exception of anesthesiology and plastic surgery, as well as emergency treatment, though no prescriptions are covered.