Premiums for next year's student health insurance plan may increase by as much as 19 percent, prompting University officials to consider cutting coverage and ponder alternate carriers.
At least 4,200 students, 75 percent of whom are graduate or professional students, will feel the effect of the changes, triggered in part by Blue Cross and Blue Shield of North Carolina's change in status to a for-profit company. Officials said other factors include inflation and higher use of prescription drugs.
"Our benefit package is ridiculously good, compared to a lot of other plans, but I don't think a 19-percent increase in insurance rates is feasible," said Graduate and Professional Student Council president-elect Rob Saunders, a member of the Insurance Advisory Committee.
The group met last week to discuss possible changes in coverage and carriers and is scheduled to make a final decision May 1. Duke has used Blue Cross and Blue Shield since 1987.
Dan Hill of Hill, Chesson and Woody, which has been Duke's health insurance broker for 23 years, said higher average doctor fees and recent successes in pharmaceutical company television advertisements have contributed to the anticipated cost increase. Without any cuts to current coverage, the price of the student insurance plan would rise from $814 to $970 per year; last year, however, the price dropped 33 dollars.
Hill added that there are several factors to consider when looking for a good plan.
"The first issue is the cost of the insurance premium, but more important is what it covers."
The current package covers 90 percent of all recovered claims under $10,000 after an initial $100 deductible. It covers 100 percent of the remaining balance, up to a $15 million maximum benefit.
Possible changes include decreasing reimbursement from 90 percent to 80 percent for claims under $10,000.
The advisory committee is also considering reducing the benefits offered by the insurance plan to offset the rise in prices.
"Whatever we decide on, someone is not going to be happy," said Saunders, a second-year graduate student in physics.
"There is really no good win in this one."
Hill said his firm will try its best to ensure a competitive package but that plans offered at the University are far more appealing than others offered to the 26-year-old age group.
"I can assure you that Duke students will want to be covered by this plan because of its attractive benefits and coverage plan."
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