Cost of student insurance rising

Student health insurance has undergone surgery, with coverage cuts and an increased cost to students.

As of Dec. 31, 2003, only 2,787 students had health insurance through the Student Health Center.

"It's lame," Heather Hansen said about the rise in insurance cost. "People are going to college. Most of us don't have jobs. We have apartments, and it's something important that we need."

Hansen, a music education student, said it's cheaper to have insurance through her parents than with the health center.

Erika Adams, a graduate student, has purchased insurance through the health center since her first year at UNM. She said the situation is unfortunate, because people probably won't renew their insurance.

"There will be more people without health insurance," Adams said. "It's important, because if health care costs are too expensive, then sick people won't go to a doctor."

Beverly Kloeppel, associate director of medical services at the Student Health Center, said the changes were made because the insurance company GM Southwest wasn't making a large enough profit from the initial premium students paid.

In 2002-03, the company paid out 95.6 percent in claims and retained 4.4 percent for administrative costs and profit. Kloeppel said the typical ratio for a company is 85 percent claims paid out, with the company retaining 15 percent.

"The company was paying out almost all it brought in," Kloeppel said.

The Student Health Insurance Committee decides which cuts are acceptable and invites representatives from ASUNM, GPSA, international student programs and other interested parties to take part in that decision.

Kloeppel said the changes to the 2004-05 student insurance policies were made in order to keep the policy affordable for students.

Students with insurance will pay 30 percent of the fee at the health center instead of 20.

"Instead of paying $2 at the Student Health Center, a visit will cost $3," Kloeppel said.

In the previous policy, students with a condition they had before acquiring their health insurance plan had to wait six months to be covered for that condition, but were covered up to $20,000. Now, students are covered at the start of the policy, but will only be covered up to $5,000 each year.

For optional major medical coverage, instead of $50,000 coverage in Option I, it will be $30,000 coverage. International students are required to carry this option as condition for their visa.

Kloeppel said changes made in the policy are the same in Plan A and Plan B. Plan A is more comprehensive and covers more than Plan B.

The annual premium increased by 13.5 percent for Plan A and 13.4 percent for Plan B.

"Despite the changes, there will still be an increase in the cost of insurance," Kloeppel said. "But the increase is not as high because of the health center charge."

Kristen Fedesco, a graduate student, has insurance with the Student Health Center. She still plans to carry insurance through the health center, partly because she likes the service she receives.

"I don't like the fact that it's going up," Fedesco said. "But it's still so reasonable compared to other plans."

The new policy and premiums go into effect on Aug. 23. The insurance plan covers one year.

Kloeppel said the Student Health Insurance Committee would meet in October to decide whether or not to put the policy out to bid for the following academic year.

More details on student health insurance can be found at the Student Health Center Web site.