Presentation is loading. Please wait.

Presentation is loading. Please wait.

Health Insurance for Texas College Students Presentation to the Senate Higher Education Subcommittee – April 23, 2008 Dianne Longley Director, Research.

Similar presentations

Presentation on theme: "Health Insurance for Texas College Students Presentation to the Senate Higher Education Subcommittee – April 23, 2008 Dianne Longley Director, Research."— Presentation transcript:

1 Health Insurance for Texas College Students Presentation to the Senate Higher Education Subcommittee – April 23, 2008 Dianne Longley Director, Research and Analysis Life, Health and Licensing Texas Department of Insurance

2 2 TDI Study: Insurance Options for College Students in Texas: A Study of Student Health Insurance Plans study conducted as a part of TDIs research on uninsured Texans Funded by a federal State Planning Grant awarded to TDI in Texas Department of Insurance

3 3 What is Student Health Insurance? Insurance products offered by commercial carriers that have contracted with a school to offer coverage to some or all students Regulated as blanket accident and health insurance under Chapter 125 of the Texas Insurance Code Is a group product, but not subject to the same provisions as employer-sponsored coverage Ten carriers provide most of the coverage, and nine of the 10 are interested in expanding their coverage Texas Department of Insurance

4 4 Study Components Discussion with school insurance coordinators Survey of colleges and universities Survey of students Survey of health insurers Texas Department of Insurance

5 5 Uninsured Rates by Age Texas Department of Insurance Age Range Number Uninsured Percent of Total Uninsured Percent Uninsured within Age Category Ages 6 and Younger 571, %20.3% Ages 7 – , %21.9% Ages 18 – 24959, %40.8% Ages 25 – 341,284, %37.3% Ages 35 – 44880, %26.9% Ages 45 – 641,103, %21.9% Ages ,6551.5%3.2% Total5,703, %24.5% Source: US Census Bureau, March 2007 Current Population Survey (Texas Sample)

6 6 Reasons for the High Uninsured Rate Among Young Adults Lose coverage under parents plan –Texas private insurance requirement of dependent coverage to age 25 applies only to fully-insured, regulated plans (2001 law) No longer qualify for Medicaid / CHIP Often work part-time, in low-wage positions, and/or for small employers; insurance coverage is often not available Texas Department of Insurance

7 7 College Students Insurance Status National estimates: 25% to 33% of students are uninsured –29% of part time students uninsured –19% of full time students uninsured Texas Department of Insurance

8 8 Benefits of Health Insurance for College Students Access to primary care Provision of services for sexually active females Mental health counseling –Nearly half of college students report problems of depression, eating disorders, alcohol abuse, stress, or suicidal thoughts Coverage for accidental injury Assists in developing a sense of responsibility and perception of the value and importance of health insurance Texas Department of Insurance

9 9 Injury-Related Emergency Room Visits per 10,000 Persons by Age and Gender, AgeMaleFemale Under 18 years1,7111, years2,1651, years1,6481, years1,1131, years and over1,3121,416 All ages1,5561,313 Source: National Center for Health Statistics 2004, Table 84 Texas Department of Insurance

10 10 TDI Survey of Colleges August 2004 survey of all 142 institutions of higher education in Texas Included public schools, private schools, community colleges and junior colleges from a list provided by the Texas Higher Education Coordinating Board 100 responses were received over four months, representing schools with 83% of Texas college students Texas Department of Insurance

11 11 TDI Survey of Colleges (cont.) Type of Institution Number in Texas Number that Responded Response Rate Public universities353497% Private colleges and universities % Public, two-year junior colleges % Health-related institutions 99100% All colleges % Texas Department of Insurance

12 12 College Requirements for Health Insurance Texas law explicitly states that health-related institutions may require insurance coverage –Seven of nine have enacted requirements for all students –Two require coverage for medical students Federal law requires coverage of international students with J-1 visas –93% of schools require it of all international students Texas Department of Insurance

13 13 Percentage of Colleges with Insurance Coverage Requirements Type of Institution All Students Certain Students No Students Public universities 0%97%3% Private colleges and universities 24%71%5% Public, two-year junior colleges 0%31%69% Health-related institutions 78%22%0% All colleges 12%61%27% Texas Department of Insurance

14 14 Colleges that Offer Insurance Type of College Number that Offer Insurance Percent of Respondents Public universities3294% Private colleges and universities1257% Public, two-year junior colleges1028% Health related institutions9100% All Responding Colleges6363% Texas Department of Insurance

15 15 Reasons Schools Do Not Offer Insurance Reason Number of Responses Percentage of Schools Citing Reason Uncertain924.32% Most students have health insurance coverage821.62% Most students cannot afford health insurance821.62% It has never been suggested/considered616.22% Most students are not interested in health insurance513.51% Other513.51% We provide information on non-school plans410.81% We offered a plan in the past, but enrollment was low12.70% No insurance company would offer coverage through school00.00% Texas Department of Insurance

16 16 Student Eligibility Requirements Requirements vary by school 70% of schools allow all students Others have requirements for minimum enrollment hours 90% allow dependent coverage Texas Department of Insurance

17 17 Costs for Coverage Premiums in ranged from $79 to $2,052 annually; the average premium was $718, and median was $835 Health-related institutions: $1,044 Public universities: $805 Private colleges: $573 Junior colleges: $319 Texas Department of Insurance

18 18 Average Student-Only Annual Premium by Type of College Texas Department of Insurance

19 19 Annual Dependent Premium Costs Premium costs are considerably higher for dependents, but competitive with the private market –Student and spouse: $2,897 –Student and child: $1,741 –Student, spouse and child: $3,911 More than half charge additional premium for each child –Average cost: $1,026 per child Texas Department of Insurance

20 20 Premium Rate Increases 22% increase from 2002/2003 to 2004/2005 Average student rate increased from $590 to $718 Texas Department of Insurance

21 21 School Plan Enrollment Rates 47 schools were able to provide enrollment numbers –35 public schools and 12 private schools Average insurance enrollment rate was 11% The highest rate was Baylor College of Medicine, at 77% The lowest rate was at Prairie View A&M, at 0.24% Average rate at health-related institutions was 37% Average rate at private colleges was 19% Average rate at public colleges was 8% Texas Department of Insurance

22 22 Semester Enrollment Fluctuation Rates Enrollment declined in summer Unless student selected full year coverage or spring and summer coverage (both of which cost more), they must take summer classes to obtain insurance Texas Department of Insurance

23 23 Semester Enrollment Fluctuation Rates (cont.) Texas Department of Insurance

24 24 Payment Method Payment method matters! Colleges that allow students to include insurance in tuition and fees have enrollment rates five times higher than schools where the insurer bills students 58% of schools with high enrollment include insurance with tuition and fees, compared to 4% of low-enrollment plans Texas Department of Insurance

25 25 Marketing and Promotion Many students and parents are not aware of the insurance option Requiring students to accept or reject coverage during registration increases the enrollment rate by nearly 300% Texas Department of Insurance

26 26 Policy Benefits and Provisions in Student Insurance Plans No medical underwriting; federal law prohibits discrimination based on health if the school receives federal funds Benefits vary –The maximum benefit per injury or illness averaged $50,000 –1/3 offer additional catastrophic protection Average deductible varied from $50 to $750 Caps on prescription drugs of $500 per year, with more generous caps in private colleges Includes maternity coverage Limited coverage for mental health, alcohol/drug abuse treatment, and inpatient care Generally exclude routine, preventive services, with some exceptions for well-woman care Texas Department of Insurance

27 27 Common Policy Exclusions Self-inflicted injuries, including suicide attempts Injuries incurred while under the influence of drugs or alcohol Injuries from high-risk activities such as sky diving or bungee jumping Accidents related to motorcycles, three- wheelers and ATVs Texas Department of Insurance

28 28 Survey of Students TDI invited 16 colleges to participate in a student survey, and nine agreed Web-based survey included 22 questions 67.4% of students were insured; 29.1% were uninsured; and 3.5% were not sure Texas Department of Insurance

29 29 Students Most Likely to be Uninsured Source of college funding is military (40%), scholarships/grants (37.5%), or student loans (36.7%) Work status: part-time (34%) and not working (28%) Hispanic (46.6%), African American (37.8%), Native American (37.5%) Older students: Seniors (40.4%), Juniors (35.2%) Texas Department of Insurance

30 30 Reason for Losing Prior Coverage Texas Department of Insurance

31 31 Primary Reason for Being Uninsured Texas Department of Insurance

32 32 Reason for Not Buying School Coverage Texas Department of Insurance

33 33 How Much Can Students Pay? Monthly Amount Students Can Pay for Insurance $10+$25+$50+$75+ Up to $100 More than $100 Unable/ Unwilling to Buy All Students 96.2%80.9%50.8%26.1%17.40%8.1%3.8% Insurance Status Insured 96.8%83.7%57.6%32.1%22.60%11.5%3.2% Uninsured 94.6%75.4%37.3%13.7%6.30%3.4%5.4% Public or Private College Public College 95.4%76.4%43.2%19.8%11.50%4.6% Private College 97.0%84.9%57.7%31.8%22.80%11.3%3.0% Health Condition Good Health 97.04%82.6%53.1%27.6%18.1%8.7%3.0% Fair Health 93.93%75.7%41.9%19.4%14.1%6.5%6.1% Poor Health 86.05%65.1%48.8%41.9%25.6%4.7%14.0% Texas Department of Insurance

34 34 Other States Requirements Three states (Massachusetts, New Jersey and Idaho) require all students to have insurance Large public university systems in Montana, California, Illinois and Minnesota also require coverage Nationally, approximately 90% of private schools and 25% of public universities mandate coverage, primarily in northern states (except for California) Texas Department of Insurance

35 35 Issues Related to Increasing Enrollment in Student Insurance Plans Affordability Adequacy of coverage –Benefits –Exclusions Accessibility Texas Department of Insurance

36 36 Policy Options for Consideration to Increase Coverage Through School-Sponsored Plans More effective plan promotion, particularly forced answer systems to select or reject coverage Increase communication between schools Increase accessibility –Lower or eliminate minimum hour requirements –Allow spring/fall students to continue coverage through summer break –Student notification regarding a continuation option upon graduation Increase the size of pools –Allow schools to join together to offer coverage –Improve benefits to attract more students –Increase communication between schools Require coverage of all students Texas Department of Insurance

37 37 For additional information or copies of reports, contact Dianne Longley at or You can also visit the TDI website at and the State Planning Grant website at Texas Department of Insurance

Download ppt "Health Insurance for Texas College Students Presentation to the Senate Higher Education Subcommittee – April 23, 2008 Dianne Longley Director, Research."

Similar presentations

Ads by Google