Isu’s Insurance Questioned School’s Plan May Not Be A Good Value For Students

Eric and Kim Crawford thought they had a good deal under Idaho State University’s student insurance plan.

But Kim, 21, will leave school to have a baby in September, so their health insurance jumps from $320 a semester to $1,463. They cannot afford those premiums.

For families like the Crawfords, the school’s coverage may not be equal to the benefits from a private plan.

The school’s insurance coverage is up for bid May 16, but it does appear the costs will drop.

“Realistically, we don’t expect a lower premium unless we lower the benefits,” said Greg Anderson, a member of the ISU insurance board.

Dallas-based MEGA Life and Health Insurance charges students $160 a semester. It costs $1,303 more to cover a non-student spouse and children.

Lance Kolbet, owner of offcampus University Insurance, said that is a poor value.

“In my opinion, they are ripping the students off,” Kolbet said. “A Blue Cross individual plan is less money and is a better value by far.”

There is no deductible when students use the school’s health center, but there is a $250 deductible when they seek treatment elsewhere.

Center director Dr. Gene Ratcliff said insurance companies save money when students use the center because its fees are cheaper than outside physicians.

“The insurance companies tailor their coverage to be used at the health center,” Ratcliff said.

The insurance board is asking bidders to increase coverage from $2,500 to $18,000 per injury or illness, according to a bid proposal.

While insurance companies have lost money with the school in the past, as of Jan. 31, MEGA Life and Health received $576,000 in premiums and paid $137,000 in claims.

Idaho State requires the company to cover intercollegiate athletes on the same policy as other students.

MEGA Life representative Dale Burns said it raises everyone’s premiums because athletes injure themselves more often.

He said 7 percent of the claims this year have been from athletes.