State Rep. Kevin Cotter
New mandate increases of costs by $6,000 for some students over four years
State Rep. Kevin Cotter today asked the House Subcommittee on Higher Education, of which he is the Vice Chairman, to investigate Michigan State University’s new policy of enrolling uninsured students in a University-sponsored healthcare plan. The students are enrolled automatically at their own expense.
“Students and families are struggling enough as it is to keep up with the out of control costs of higher education,” said Cotter, R-Mount Pleasant. “The new MSU mandate increases costs on students and families who must already find a way to pay for recent increases in tuition. Michigan’s working families cannot bear an additional, unnecessary burden in this economy.”
The federal Affordable Care Act allows children to stay on their parents’ insurance plans until age 26. Incoming MSU students who fail to pursue and obtain a waiver based upon existing coverage are automatically enrolled in a University-sponsored plan and charged for it by the school.
“Punishing students whose parents cannot afford coverage by forcing them to pay nearly $1,500 per year for coverage is illogical and irresponsible,” Cotter said. “Michigan families deserve the best and most affordable options for higher education we can give them, and I am concerned their options are being severely limited by this policy. I look forward to hearing more about this plan in our committee hearings and seeing what we can do with MSU to increase protections for students and their parents.”
Under the MSU plan, students who have coverage are able to opt out, but the university is placing the burden of opting out on the student. If students do not opt out, they are automatically enrolled and charged for coverage.
“It is important that we give this matter the attention it deserves, and that is why I am requesting a committee hearing,” Cotter said. At Cotter’s request, MSU has agreed to delay the deadline to opt out set for January 31, 2012, by 30 days. “There are many questions left to be answered and there is a strong likelihood that many students will be automatically enrolled in duplicative healthcare coverage at significant cost to them.”