For the first time in two years, Ohio University is hoping it will get students a better insurance package by acquiring one on its own.
OU issued a “request for proposal,” commonly known as an RFP, to multiple health insurance companies Nov. 8, asking them to propose a premium for the plan OU has proposed.
The university issued the RFP this year to move away from OU’s current plan, in which it participates along with other Ohio public universities through the Inter-University Council of Ohio, a coalition of state universities. The plan OU proposed in the RFP is almost identical to OU’s current plan.
OU is switching because the other public universities in the IUC collaboration have much higher loss ratios than OU, said Ryan Lombardi, vice president for Student Affairs.
That means OU students and their premium payments made the plan financially feasible for UnitedHealthcare, who currently provides the university’s health insurance.
“We as OU were subsidizing those other five schools,” Lombardi said.
OU might be able to garner a better deal for its students by issuing its own, separate bid, Lombardi said.
OU expects to decide on an insurance plan by February 2014.
UnitedHealthcare currently provides OU’s student health insurance, with the following 2013-14 premium rates:
Domestic and international students: $1,487
Spouses: $2,911
Children: $1,696
The Division of Student Affairs acts as an intermediary between the insurance company and those on campus enrolled in the plan and doesn’t benefit financially from the process.
Once OU has received bids from insurance companies, the university will take them to Student Senate and Graduate Student Senate for feedback, said Anna Wenning, OU’s student health insurance coordinator.
“We simply find a plan that we think has suitable coverage at a reasonable price,” Lombardi said.
These negotiations affect the almost 4,000 domestic and international students, as well as some of their spouses and children, who are currently enrolled in the university’s health insurance plan, according to non-finalized enrollment numbers provided by the Office of the Bursar.
OU collaborated with IUC to reduce premiums, starting in the 2012-13 academic year, Lombardi said.
Other universities in the plan include: Bowling Green State University, Wright State University, Youngstown State University and Cleveland State University, according to Cindy McQuade, vice president for operations at IUC.
dd1957101@ohiou.edu
@WillDrabold
This article appeared in print under the headline "OU looks to acquire new insurance package to lower student premiums"
