A proposed regulation announced Wednesday by the U.S. Department of Health and Human Services would require that student health insurance plans provided through universities and colleges comply with certain provisions in the Affordable Care Act that was signed into law last March.
Although the nation's colleges and universities are currently able to exempt themselves from the requirements of the Act by classifying student health insurance plans as limited benefit plans, the proposed regulation would ensure that students obtaining health insurance coverage through their school receive the same protections and rights as other Americans under the Affordable Care Act, an HHS news release stated.
Under the regulation, insurance companies would no longer be able to drop the coverage of a student because of an unintentional mistake on an application, impose lifetime dollar limits on the amount spent on health benefits in student health plans or deny or exclude coverage for students under age 19 for reasons of a pre-existing condition. A proposed rule also allows for students to remain on a parent's health plan until the age of 26.
"For many students, these health plans are their only health insurance option. The Affordable Care Act allows HHS to take steps to help preserve market stability and help ensure student health plans remain available until all Americans have new coverage options," Richard Sorian, assistant secretary for public affairs at the Department of Health and Human Services, said in a blog.
Sorian added that the proposed regulation would add transparency to the health-insurance market for students, as it would "require insurance companies to tell students enrolled in student health plans whether or not their plan meets the new requirements laid out under the Affordable Care Act".
HHS spokesperson Keith Maley commented on the advantages students would gain as a result of the proposed regulation.
"It's about improving choices for students and improving quality of care," Maley said, adding that the goals of HHS included "improving coverage for students and transitioning to a marketplace that is more consumer-oriented in 2014".
At the University, the regulation could affect more than 4,000 students who are covered by Aetna, the University's student health insurance plan. The proposed rule, however, "won't have a real significant impact on our student health system here because our plan already essentially meets what was outlined," said Susan Davis, the University's vice president for student affairs.
Davis noted that the only notable difference that would come into play would deal with the regulation's "issue of having no lifetime maximum or cap. Currently, [the University] has a $1 million maximum." She also indicated that she was unaware of any University student who has reached the $1 million maximum.
HHS requested that a 60-day comment period on the regulation begin Friday before it would finalize the regulation, according to a press release. If enacted, the rule will take effect Jan. 1, 2012.
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