Ave Maria University considers cutting student health plans

After suing the federal government over the contraceptive mandate included in new health care regulations, Ave Maria University is now considering dropping health insurance coverage for students.

The school may not be alone in its concerns. A student health insurance provision outlined as part of the Affordable Care Act requires benefit caps be at least $100,000 next year and five times that the following year — meaning increased premiums could be reality for students on other campuses as well.

"I think all universities are struggling with this," said Mike Rollo, vice president for student affairs at Florida Gulf Coast University.

"We feel obligated to provide something, but the price is so high some people are saying, 'Well, gosh, how can we justify something so expensive?'"

Although they are not required to provide health insurance coverage to students, the majority of colleges and universities do, said Steven Bloom, director of government relations for the American Council on Education. Bloom said some of those schools are worried about the regulations and the potential of increased costs for students.

His organization, which represents and advocates on behalf of more than 1,600 campus executives, is concerned for the same reason.

"We don't want to see any additional financial burden imposed on students," Bloom said.

Ave Maria University President James Towey echoed those concerns. At the private college, insurance coverage is required, and 12 percent of the 800 students use the school's plan. Under the new regulations, Towey said insurance premiums are expected to increase 65 percent next year, from $839 to $1,392 annually.

"They should have put the Affordable Care Act in quotations — the 'affordable' part," Towey said. "From a student's perspective, 550 bucks is a lot of money."

Ave Maria officials haven't yet heard from students about the potential loss of insurance, he said. The university may also stop requiring students to have coverage.

Florida Gulf Coast University doesn't require health insurance for students, Rollo said, and only about 1 percent of the 13,000 use the school's plan. Because FGCU's benefit caps are already near $100,000, the annual cost is $1,300 and Rollo doesn't expect an increase next year.

That could change in coming years, when the caps grow to $500,000 and eliminated after the 2013-14 school year. How much it could increase at FGCU and other schools is not known, Bloom said.

It's a complicated issue, Rollo said, and many insurance carriers simply refuse to give quotes for student health insurance plans. Because it isn't mandatory at FGCU, often only students with costly health care needs purchase the plans — meaning a high amount of risk spread between a small group of people.

"What we're hearing from the carriers is that this is getting really expensive," Rollo said.

But FGCU officials plan to continue providing it.

"We still feel it's important for us to offer it," Rollo said.

Bloom said he's heard from schools that, like Ave Maria University, have raised the possibility of eliminating student health insurance plans to avoid costs. Leaders of the Southwest Florida school plan to discuss their options on Monday.

At Franciscan University, an Ohio college with loose ties to Ave Maria University, the decision to drop student coverage has already been made.

The two schools are motivated in part by their religious mission. Towey, who formerly led the White House Office of Faith-Based Initiatives under former president George W. Bush, said Ave Maria will continue to fight a provision of the law that requires insurers to pay for contraceptive care.

"We just feel it's an attack on our religious beliefs," he said.

As for ending student coverage, Bloom said he doesn't know how many institutions will decide to take a similar route.

"The difficult part," Bloom said, "is not really knowing how this is going to play out."

21 May, 2012