UM Regents consider changes to student insurance

MISSOULA — The state Board of Regents is looking at making some changes to the insurance plan it offers university students because fewer of them are purchasing the plan and premiums aren’t covering the full cost of claims.

“The question is, can we create a value proposition where this is a better deal for them than anything they can get on the open exchange, or anywhere else?” asked Jim Mitchell, director of Student Health Services at Montana State University.

The plan provided by Blue Cross and Blue Shield of Montana saw a loss ratio of 112 percent last year, the Missoulian reported.

Rick Curtis, director of Curry Health Center at the University of Montana, said the current plan worked well for the past 16 years. But that changed in 2010 when Congress passed the Affordable Care Act.

Students attending Montana’s public universities must have health insurance, but under the new law, students under age 26 were allowed to remain on their parents’ plans, leaving fewer and older students purchasing the university system plan.

Connie Welsh, director of benefits for the Montana University System, said there appear to be three options: making the student insurance plan more solvent and attractive to buyers; eliminating the plan completely and directing students to the open exchange; or creating a self-funded plan that would save money by not having to pay a premium tax. The disadvantage to a self-funded plan would be absorbing any loss if claims paid out are higher than premiums collected.

Kevin McRae, deputy commissioner for the Office of Commissioner of Higher Education, said regents will consider the options over the next several months and likely make a decision by February or March.