Student health care plans are exempt from the rules that regulate insurance coverage to the general public. Insurance companies do not have to abide by a minimum coverage percentage for people in school. This allows Aetna Student Health, the company that provides Tufts' student health coverage, to put only 63 percent of insurance premiums towards medical coverage. The coverage that students on the Tufts plan receive has a capped limit on prescription drugs and mental health care, and is not enough to fund preventive care and dental procedures. State reform of student health care is necessary to ensure that students are receiving the maximum coverage that their premium can provide and that there are multiple premiums available for students with different health care needs.
Insurance companies make higher profits on average on student health insurance than they do on insurance plans for the general public. Student health care providers are exempt from the Massachusetts mandate requiring that insurance companies put a certain percentage of payers' premiums towards medical coverage. The premium that Tufts students pay with Aetna Student Health is $1,535 — with only 63 percent going to medical coverage, that leaves $568 of each student's payment going toward Aetna's administrative costs and profits. Massachusetts should no longer allow student health insurance providers to take advantage of students, profiting off them more than the general public. A bill proposed by State Sen. Richard Moore (D-Uxbridge) would require that student health care providers abide by the Minimum Creditable Coverage mandate that regulates insurance provided to the general public. This is an important first step to improve efficiency and maximize the returns students receive from their premiums.
Students using Tufts' health insurance plan are often faced with the choice of foregoing medical treatment or incurring debt. Aetna Student Health caps prescription drug coverage at $1,500 per year, which is often not enough for students with chronic health conditions. Reform of student health care should also include multiple premium options which would allow students with greater medical needs to receive adequate coverage without increasing premium costs for the general student population.
With inadequate coverage from student health insurance providers, some students fall back on the Health Safety Net Trust Fund, a state fund that compensates students whose insurance cannot cover their medical expenses. Students with inadequate coverage thereby burden state resources and incur medical debt. Massachusetts should allow these students, if eligible, to enroll in Massachusetts' state-subsidized Commonwealth Care insurance plan rather than stick with the inadequate Student Health Program. This would allow students to receive lower-cost health insurance, avoid debt and alleviate strain on state funds.
The current system of student health insurance is inefficient and inadequate. Students are paying premiums that do not reflect the care they are receiving, and many do not have plans that adequately cover their medical expenses. Massachusetts legislators should follow the lead of State Sen. Moore in calling for dramatic student health care reform to improve and expand coverage and regulate insurance providers' allocations.
