UNIVERSITY PARK, Pa. — The Task Force on Student Health Insurance has released its final report and recommendations after examining the current state and future of student health insurance at Penn State.
The 17-person task force was charged in April by Penn State Executive Vice President and Provost Nick Jones to explore the interpretation of how the federal Affordable Care Act (ACA) applies to the Penn State student health insurance plan. The group was asked to examine factors that contribute to the rising costs of coverage independent of ACA; review the long-term challenges and opportunities facing student health insurance at Penn State; and identify recommendations for the University to implement or explore.
University officials were able to negotiate a smaller increase in health care premiums for Penn State students for 2014-15 with insurance provider Aetna, after a combination of events, including implementation of the ACA, led to a rise in costs for the plan.
“The task force put a lot of time into researching and understanding ways in which the University can approach student health insurance and access to care and have provided us with a comprehensive report and an extremely useful resource moving forward,” Jones said. “Universities across the nation are facing similar challenges, and we will continue to monitor developments and explore options in an attempt to lessen the impact of rising health care costs on our student populations.”
To address the increasing cost of student health insurance and investigate challenges and opportunities at Penn State, the task force met with representatives from Penn State's insurer, Aetna, and the University’s health insurance consultant, Towers Watson, to better understand the insurance changes. University Health Services provided the group with information about student health insurance offered at other Big Ten schools.
“Our first job was to gather information to make sure everyone understood both the events that had happened over the previous several months with student health insurance at Penn State, as well as what the situation regarding student health insurance looks like around the country and in the future,” said task force Chairman Dennis Shea, professor of health policy and administration and associate dean for undergraduate studies and outreach in the College of Health and Human Development. “The first several meetings were talking through the issues, the data and trying to get a picture of what the landscape looked like.”
Once the task force outlined the issues as a whole, the group identified six areas of focus:— mental health;— provider network and relationships;— health insurance requirements and waivers;— process, organization, and engagement;— premiums and university contributions; and— plan structure, benefits and coverage.
A subcommittee was formed to explore each area of focus in depth. Each of the six subcommittees was co-chaired by a student and non-student and consisted of four to six task force members to review the issue and write recommendations. Final recommendations from each subcommittee were put forward for a formal vote by the entire task force.
“It was an extremely useful process, and it got us to a point where we understood some of the real challenges for student health insurance,” Shea said. “The report is very future-focused and tries to use all of the information we gathered to figure out the long-term challenges and some potential directions for the University.”
The task force report and recommendations can be read in their entirety here. The task force report also compiled a “Guide to the Affordable Care Act and Health Insurance for Penn State Students” to be used as a resource for parents and students to better understand the student health insurance process. The guide, data and benchmarking information and a list of frequently asked questions can be found on the task force’s website, http://sites.psu.edu/tfonshi/.
The task force voted as a whole in favor of the following subcommittee recommendations:
Mental Health
— To ensure mental health access through student health insurance, Penn State should pursue a contract that minimizes out-of-pocket expenses; ensure the provider network is sufficient to meet demands; and ensure access to specialty care by advocating for inclusion of providers who serve students and are within walking distance of campus.
— To ensure rapid access to short-term campus-based mental care, Penn State should expand Counseling and Psychological Services (CAPS) by implementing a Student Mental Health Fee to augment existing centralized funding; prioritize a flexible space solution to add additional office space that is easily accessible; and perform a salary survey along with indicated salary adjustments for all current and future mental health providers employed by the University.
Provider Network and Relationships
— Pending approval from Penn State, Hershey Medical Group (HMG) and Aetna, the University should designate HMG as a preferred provider for primary care of Penn State student dependents (children under age 16 only) and explore altering the coverage for pediatric visits so that dependent coverage is at 100 percent or as close as possible.
Health Insurance Requirements and Waivers
— Penn State should institute and enforce a requirement for adequate student health insurance so that all full-time students are required to enroll in the student health insurance plan or provide proof of health insurance with coverage in their Penn State community (i.e., an “opt out” requirement).
Process, Organization and Engagement
— Penn State should work to improve student knowledge and understanding of health insurance by providing educational workshops to students and parents during orientation and other key periods; holding at least two annual town hall meetings with the Student Insurance Administrative Counsel (SIAC); holding at least one yearly meeting about expected student health insurance changes; and post costs and coverage details on the University website by June 1 of each year.
— Penn State should work to improve student engagement in the decision-making process regarding student health insurance by developing formal appointments to the SIAC for key student groups; requiring the SIAC to meet monthly to review data and address issues; and require that monthly premium, claims, cost and other insurance data be archived.
— Penn State should improve organizational structure and processes by contracting with a health insurance consultant for contract and annual rate and benefit negotiations; require the consultant and insurer to present at least two options by Oct. 15; have deadlines of
— Dec. 15 for SIAC to make a final decision and forward recommendations to the vice-president for Student Affairs, the dean of the Graduate School and senior vice-president for finance and business
— Feb. 15 for the final decision on a student health insurance plan to be made by the vice-president for Student Affairs and communicate to all interested parties
Premiums and University Contributions
— In order to mitigate student costs, Penn State should maintain, rather than decrease, contribution levels for students on graduate appointments; and consult graduate student organizations during the decision-making process.
Plan Structure and Benefits
— Penn State should make decisions about plan structure benefits and coverage with the help of consultants; seek expert advice and evaluate whether to join other universities to encourage changes to the complex Pennsylvania law that governs student health insurance self-funding requirements; and make decisions about plan benefits only after the coverage and premium options have been vetted through SIAC and other groups.