Health Insurance - Explanation of increase

2013-2014 Academic Year

In order to cope with the high cost of healthcare coverage under a health insurance plan has become a necessary financial tool.  With the passage of the Federal Patient Protection and Affordability Care Act (PPACA), the Federal Government is now requiring that all citizens be covered by a PPACA compliant plan or they will be subject to tax liabilities beginning January 2014.  Additionally, New Jersey Senate Bill 2291 provides in part that:

  • The state law requires that all institutions of higher education in New Jersey to offer health insurance coverage on a group or individual basis for purchase by students who are required to maintain the coverage pursuant to this section. 
  • The current health insurance policy underwritten by United Healthcare requires full-time students to present evidence of health insurance coverage in order to be able to waive/opt out of the coverage.

The Federal regulation for all Collegiate Student Health Plans effective July 1, 2013 must provide minimal limits of $500,000 per year and eliminate any sub limits for prescription drugs and wellness benefits.  As a result the New Jersey State Colleges and Universities Student Plan’s benefit levels will be increasing to meet these mandates. 

The increase in benefits unfortunately also requires an increase in the annual premium cost. This year student health insurance cost will be increasing from $855 annually to $1,050 for undergraduate and from $1,242 to $1,505 for graduate students.  We understand that the cost of the health insurance even if partially subsidized by financial aid is still a burden for our students in need, so we have made some modest changes to the co-payment, co-insurance and deductible levels in order to keep the cost as low as possible.

We encourage students to investigate their healthcare insurance options to find the most affordable option for themselves.  The new federal healthcare laws require parents’ health care policies to provide coverage for dependent up to age 26.  Students should also explore their eligibility for public health benefits before deciding whether or not to waive out of the student insurance program.