As if getting sick wasn't bad enough.
All students under the University's health insurance plan face premium increases of 27.8 percent next year, which would add almost $300 to the current yearly premium of $1,063. This jump, which representatives from Blue Cross/Blue Shield, Duke's health insurance provider, announced at a Health Insurance Advisory Committee meeting March 4, came as a surprise to those who have watched the issue closely.
"I am concerned about this increase--I thought it would be about 15 percent," said Dan Hill, co-founder of Hill, Chesson and Woody, which has been Duke's insurance brokerage firm for 25 years. "I'm rather unconvinced that that is the appropriate rate increase."
Hill explained that at 17.5 percent, the rate of inflation in student health care plans is a little bit higher than the nationwide health care inflation that is about 15 percent. The University's increase of almost 28 percent this year, however, is significantly higher than in the past. Last year saw an increase of 17.4 percent, and in 2002 students faced a 20 percent increase in premiums.
Rob Saunders, president of the Graduate and Professional Student Council and a member of HIAC, said he was disappointed by the rate increase, but there are a number of options available to the committee in the immediate future to help avoid paying such dramatically higher premiums. The committee, made up of faculty and graduate and undergraduate students, will meet in April to discuss whether they will pursue other insurance companies or help distribute the rise in premiums.
"The obvious idea would be to go out into the marketplace and see if there are any [health insurance providers] who could insure us for less," Saunders said. He added that the committee could raise the deductible, raise the maximum out-of-pocket per year, or change the amount the insurance provider would reimburse.
Saunders said GPSC will likely create an online questionnaire to gauge what students want. The survey will be targeted at graduate students because the majority of students insured under Duke's plan are in the graduate and professional schools.
Saunders added that the remaining time in the school year will be especially important, as the HIAC will make a decision about its course of action by the end of the semester.
While many officials anticipated a rise in premiums, few expected such an increase. Blue Cross/Blue Shield attributed the increase primarily to the increasing cost of insuring Duke students.
"We set premiums to cover anticipated medical costs," said Mark Spinneford, a spokesperson for Blue Cross/Blue Shield. "What led to the increase was a significant increase in utilization of health care by the student group, and it was particularly pronounced at the end of the year."
Many believe that the increase was too extreme, however, even after considering increased student use of health care insurance.
"I can explain why they would increase premiums 20 percent this year," Hill said. "But I can't explain 27.8 percent. I was disappointed [by the increase], but I've been in this business long enough now that nothing shocks me anymore."
Hill added that higher insurance premiums are unavoidable.
"It could very well be that when we go to the marketplace, Blue Cross/Blue Shield will still be the best," he said. "At least we'll have a fair analysis for the [HIAC]."
Hill, Chesson and Woody also brokers Blue Cross/Blue Shield insurance for the University of North Carolina at Chapel Hill. UNC, however, did not see premium increases as dramatic as Duke's because its students' premiums were already higher than the University's.
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