Health Insurance Increase

New Jersey State Colleges and Universities
Risk Management                                                                                                    
Student health insurance
August 1, 2011

This year student health insurance cost will be increasing from $250 to $715 annually for undergraduate and from $361 to $1,033 for graduate students.  The coverage being provided by the new student health insurance plan has been improved in keeping with the premium increase. The new policy will have a $50,000 per accident or illness policy limit with a $1,000 prescription drug benefit and $750 in wellness benefits.  Students who have other coverage available will be able to waive out of the student health insurance plan.

New Jersey Statute 18A:62-15 provides in part that:

1.      Every student enrolled as a full-time student shall present evidence of the health insurance coverage required by subsection a. of this section to the institution at least annually.

2.      The State Department of Health shall require all public and private institutions of higher education in this State to offer health insurance coverage on a group or individual basis for purchase by students who are required to maintain the coverage pursuant to this section. 

In addition to the State mandates, the United State Department of Health and Human Services has issued proposed regulation that would establish rules for student health insurance coverage under the Public Health Service Act and the Affordable Care Act.  In view of the new federal health care legislation which mandates the phasing in of substantial improvement to the standard college student health insurance policy, the Colleges collectively decided to proactively address the problem and we are proud to present our students with a greatly improved student health insurance plan.

As the new federal health care laws and regulations are implemented over the next several years we know that we will be required to improve the level of coverage offered by our plan and consequently the cost of the premium will continue to increase due exclusively to those mandated changes. 

The new federal healthcare laws also require parents’ health care policies to provide coverage for dependent up to age 26, so we encourage our students to investigate that possibility as an alternative to the student health insurance.  Students should also explore their eligibility for public health benefits before deciding whether or not to waive out of the student insurance program.