Sidebar: How Ohio University gets student health insurance. Read it here.
It’s unclear how—or if—the Affordable Care Act will affect insurance policies that Ohio public universities are required to offer students under state law.
President Barack Obama delayed the cancellation of insurance policies that aren’t compliant with the Affordable Care Act a few days after Ohio University sent out its “request for proposal” for insurance policies.
The policy offered this academic year was already compliant with the health care law; the university is putting the policy out for bid in hopes of getting a better price for students.
That means these recent changes don’t apply, said Tasha Bradley, a spokeswoman with the Center for Medicaid and Medicare Services.
“Not only will your plan not be affected, but as the school is trying to be a new enrollee, they couldn’t get one of these (non-compliant) plans,” Bradley said. “You would have to be in one of the old plans.”
Before Obama’s yearlong delay, most plans that didn’t meet the law’s requirements were set to be canceled Jan. 1.
But there is miscommunication between the federal agencies putting the law in place, the state that mandates universities offer health insurance and the public universities responsible for procuring a policy for students.
“At this point in time, we are working to determine if there is an impact on student health insurance provided through colleges and universities,” said Robert Denhard, a spokesman for the Ohio Department of Insurance. “We have reached out to the federal government for clarification and they have not responded yet.”
There are several other provisions in the law that could affect the university’s insurance bid process, said Anna Wenning, OU’s student health insurance coordinator.
The health care law requires insurance companies to offer four different price options with plans of varying premiums and out-of-pocket medical costs, but it’s unclear whether companies will include four plans in their bid responses, Wenning said.
Wenning also said provisions such as the 80/20 rule, which mandates insurance companies spend at least 80 percent of premiums on medical care and are required to pay insurance holders the difference if they don’t, might also not be in effect when insurers return their bids.
During the 2012-13 academic year, this “loss ratio” was 65.13 percent. Under the ACA, the dollar amount difference between 65.13 and 80 percent would have to be refunded to those enrolled in the plan.
Ryan Lombardi, vice president for Student Affairs, had stated previously that he hoped the 80/20 rule would help drive down insurance premiums for students who opt for the plan—of which 20 percent of eligible students on Athens’ main campus were enrolled for the 2013-14 Fall Semester.
UnitedHealthcare, which currently provides the university’s health insurance, would not comment specifically on what effects Obama’s announcement will have on student health insurance plans.
Insurance companies have until Dec. 9 to respond with a bid.
“We are currently assessing the implications of the latest guidance and are awaiting further direction from our state regulatory partners,” Will Shanley, director of public relations for UnitedHealthcare, said in an email.
dd1957101@ohiou.edu
@WillDrabold
This article appeared in print under the headline "Changes to student insurance unknown"
