Insurance costs rise for UNM students

ALBUQUERQUE, N.M. (AP) - The cost of health insurance for University of New Mexico student could increase as much as 30 percent next school year as the national health care overhaul is causing a rise in premiums in most student insurance plans around the country.

The Albuquerque Journal reports that the increase in cost at UNM hasn't been set because the school hasn't yet selected a vendor for its health insurance plan.

But UNM student health and counseling director Beverly Kloeppel said colleges and universities nationwide have seen their student plans spike by anywhere from 20 percent to 30 percent.

"I would say that it's likely the university would experience similar (increases)," Kloeppel said.

The overhaul's provisions that affect student health insurance plans take effect in August.

About 2,000 UNM students, including student employees such as graduate assistants, are covered by the school insurance program. The annual cost for a student plan at UNM is about $1,400.

One effort to contain costs was a partnership UNM formed with New Mexico Institute of Mining and Technology for a new health insurance vendor. The potential vendor would have a greater pool of students to insure, so it might be able to keep the premium increases lower, Kloeppel said.

Those new premium costs could be set as soon as next month, when Kloeppel expects to recommend a vendor to the board of regents. Regents have to approve the insurance plan.

Kloeppel said the rise in premiums could mean fewer students opt for UNM's plan.

But the health care overhaul has increased the age limit for youths covered by their parents' insurance to 26, she added, meaning that many more students can stay insured by their parents' employer.

Among the reasons for the growing premiums are significant increases in the amount of medical costs that insurers will be forced to cover.

Next year, insurers can impose a limit of no less than $100,000 in costs they will cover. The year after, that amount will rise to $500,000 and the year after that there will be no annual limit, meaning insurance companies will be forced to cover all costs accrued by a student.

Students are not the only ones who will be affected by changes imposed by the overhaul.

Insurance premiums for regular UNM employees, who are covered under a different program, will increase by 8.5 percent. UNM will also pay some of those costs, increasing the amount they pay by another 8.5 percent.

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Information from: Albuquerque Journal

21 May, 2012