The approximately 6,100 students enrolled in Duke's medical insurance plan may find changes in coverage when the current plan expires Aug. 16.
Student Health sent out a Request for Proposal Jan. 7, inviting bids from interested providers, and will hear back at the end of February, said Dr. Bill Purdy, executive director of Student Health.
In choosing a new insurance plan provider, the spotlight is on restructuring the co-payment system and providing more mental health care services.
Currently, 80 percent of graduate and professional students and 20 percent of undergraduates subscribe through the University to Blue Cross Blue Shield of North Carolina.
Larry Moneta, vice president for student affairs, said it could benefit more students to switch their coverage to the Duke plan as well.
"We feel that with managed-care forms of insurance substantially limiting out-of-network care, students-and their families-will be better served with the Duke insurance program," Moneta wrote in an e-mail. "We've had numerous experiences with injuries had here... where the family insurer demanded that the student fly home for care.... That's a problem."
After evaluating proposals from bidders, three or four finalists will be invited to meet with Purdy and the Student Health Insurance Advisory Committee, with the final decision to be made March 21.
Currently, Duke operates on a deductible basis for office visits to specialists, working off of an 80-20 percent payment system. Purdy said this means that students pay all of the costs for the first $100 or $150 of care and then 20 percent for costs exceeding that base. The insurance company covers the remaining 80 percent of the fees.
"We want a better deal for students who only visit specialists a few times," he said. "What we put in for the bid was if you go to a specialist, you will only have to pay $25 for that office visit."
Mental health care coverage, on the other hand, will be a challenging issue to address, Moneta said.
"The main problem that we have had is sufficient mental health care coverage and there are some providers in town that will just not take insurance," Purdy said. "They won't accept what the insurance company pays and take cash up front. And they are in such demand that they are able to do that."
Moneta said Duke's insistence on strong mental health benefits is an important reason to opt for the Duke plan.
"We're working very hard with the Duke health system to provide specialty care-eating disorders, addictions therapy and much more-but it's quite an uphill battle to ensure accessible and affordable mental health care," he said.
Although BCBS has a strong presence in North Carolina, serving neighboring schools North Carolina Central University and the University of North Carolina at Chapel Hill, it is not a major player nationwide, Purdy said. However, it is still anticipated to be a contender in the bidding process, along with The Chickering Group of Aetna, and United HealthCare StudentResources.
The reevaluation of insurance plans occurs every three to five years, Purdy said. He added that the contract would last at least four years, so the University would be cautious about choosing a company that underbids.
"We want to avoid a situation where you pay a low price for two, three years, and then you're zapped with a 40-percent increase," Purdy said. "You want to make it realistic, but you also want to make it as beneficial for the students as possible."
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