Universities struggle to keep health care costs low

State universities nationwide are attempting to offer better quality student health care plans under the Affordable Care Act, but another goal — keeping costs low — might be more difficult to achieve.

The UNC system has yet to make a decision on whether to select a new health care provider or continue using the system’s current insurer, Pearce & Pearce, Inc., a service arm of the insurance company Chartis.

The system originally sought to make a decision by Feb. 15, but it is still in the process of reviewing other providers’ proposals.

Brian Usischon, the UNC system’s associate vice president for human resources and university benefits, said system leaders aim to periodically assess the market for plans.

“I think we should find something more competitive,” he said. “It’s possible that student insurance could be lower, but we simply don’t know.”

This year, health care premiums for UNC-system students on the plan increased from $460.50 to $709 per semester, with 12 percent of the increase due to expanded benefits under the Affordable Care Act.

These included coverage for pre-existing conditions, birth control and preventative treatment.

Balancing quality with cost is a situation many universities find themselves in, said Kris Kreutz, director of administrative services at the University of Arizona’s Campus Health.

“Of course, there must be a corresponding increase in cost associated with increased benefits,” Kreutz said.

But he said the expanded coverage only increased premiums at the University of Arizona by 4 percent, bringing the total cost for students to $1,660 in 2012-13.

Laurie Burchett, student insurance manager at the University of Michigan — where student insurance costs $2,974 annually — said prices have been increasing due to more pharmaceutical benefits.

Burchett also said it might be difficult for schools to find cheaper health care.

“A lot of insurance companies are charging the same amount,” she said.

Other school systems, like the University of California system, provide their own self-funding health insurance plans, which cost UC SHIP Preview&Channel=Insurance $1,602.39 annually with dental coverage.

“An equivalent plan with a different company is more expensive,” said Brooke Converse, spokeswoman for the UC system.

While many administrators support expanded benefits under the Affordable Care Act, Greg Steele, chairman of the N.C. Federation of College Republicans, said the increase in premiums for students is a sign the act has not lived up to expectations.

“A lot of people had different expectations for what kind of costs we would have,” Steele said. “I can’t blame (the system) for looking for a different plan.”

Contact the desk editor at state@dailytarheel.com.