Not So Affordable: Obamacare Resulting In Dramatic Increases In Health Insurance Costs For College Students

kentucky-student-health-insurance

The cost of tuition and student fees has grown faster than pretty much every other expense Americans face these days including food costs, health care costs and housing costs. This has resulted in Americans accumulating huge amounts of student loan debts, to the point where citizens in this country carry more debt from college than from credit cards. Student loans are second only to mortgages in rankings of American household debt.

And, thanks to Obamacare, health insurance for college students is dramatically more expensive now too:

A Young America’s Foundation activist forwarded an email from the Vice President for Finance at his school, Guilford College (Greensboro, NC), informing him that, “For the 2012-13 academic year, the annual cost of the student health insurance is increasing from $668 to $1,179. This insurance premium has been charged to your student account.”

Why the increase? “Our student health insurance policy premium has been substantially increased due to changes required by federal regulations issued on March 16, 2012 under the Affordable Care Act.”

Guilford College has been forced to raise their student premiums 76 percent, yet this administrator still insists on calling it the Affordable Care Act.

Seems a bit ironic, to say the least.

Guilford joins a long list of colleges raising their premiums. Virtually all current student insurance plans do not meet ObamaCare’s mandates, and Forbes reports colleges have been forced to drop their plans or raise their premiums rates as much as 1,112% (and no, that’s not a typo).

You can read the full email referenced above here. “”As a result, all collegiate student health plans with an effective date of July 1, 2012 or after must provide a minimum benefit of at least $100,000 per policy year, have no limits on benefits deemed essential by the Act, and provide a preventative care benefit with no deductible, co-pays or co-insurance,” it reads. “In compliance with these mandates, the following changes have been made to the College’s student health insurance policy.”

In other words, because the government has decided for us what our insurance policies will and will not offer those policies will cost us more.

What the American health care system needs is more flexibility and choice for patients so that market forces can work to bring down inflated prices. What Obamacare has introduced is more rigidity and top-down government control which is, as we can already see, only serving to inflate prices further.

Obamacare, as we critics have pointed out all along, was sold as making health insurance more affordable and accessible. What it will actually accomplish is making health insurance less affordable and harder to access.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • Harold

    College liberals voted for Obama and his health care plan in large numbers, it would be only fitting that he sticks it to them to with high costs. Couldn’t happen to a better bunch of people in my view.

    • yy4u2

      Just a revolving door so to say. They probably have to pay for it with govt loans so in essence, they, the elite thinkers of our day (i.e. the US Congress) are robbing Peter to pay Paul.

      • borborygmi

        You do understand the conept of loans don’t you. You know the payback part.

        • yy4u2

          There isn’t enough payback because they can’t find a job to pay for the over inflated piece of paper. I’ve had vehicle, student and home loans. All of them are paid off so yes, I know the payback part. Because others don’t, we are facing a student loan bubble. So the govt supplies the money from the taxpayer to educate and insure and the responsible people like myself get left with the bill. It isn’t right no matter how good it makes you and the rest of the libs feel.

          • robert108

            As with every other market the govt tries to manipulate for social reasons, they have created a bubble in “higher” education, which devalues the entire system.

        • robert108

          The real concept of a loan is that it has to be worth it. What you borrowed money for has to pay the loan and more, otherwise it’s a bad decision. Econ 101

          • borborygmi

            I agree. If you go in to ArtHistory with a minor in drum pounding not a good move. That is why I am for higher admission standards. Not the 21 act of NDSU . 25 or even 28 aggregate scores. Higher education shouldn’t be just for the wealthy. Loans are needed. I know a couple of people who have not paid there loans and the gov’t is on there backs. Wage garnishments,confiscated tax refunds every kind of pressure this side of Cousin Guido breaking knee caps. Companies can look up your credit history and if you have bad credit they will not hire you because of character flaws.

          • robert108

            Higher education hasn’t been for “the wealthy” since we nationalized education, over a hundred years ago. The reality is that achievers are motivated to achieve for many reasons, one of which is to be able to educate their children above the lowest common denominator of public education. They earn that.

  • SigFan

    Nothing costs as much as anything the left says is free. I wonder how many people are going to find themselves in similar straits. With all the mandated coverage, no premium hikes for pre-existing conditions (or denial of coverage for that matter), covering your “kids” until they’re 26, what did anyone rational expect was going to happen? This was never meant to provide affordable coverage – it was always just the first step to driving private insurance out of the market.

  • borborygmi

    There parents must not have insurance.

    • $8194357

      Or they’re older than 26?

      • borborygmi

        That would be an older then avg student alright. Flunked out the first time coming back for the second.

        • yy4u2

          Damn, Borb. Not all of us are like your family. I went back at 25 because I changed careers. I did it out of my own pocket, too. I wasn’t able to live in the grandest of places or drive the latest sports car either. I didn’t live in my parents’ house nor was I on any govt assistance. I lived within my means, worked numerous jobs and graduated from a 4 yr university…as a white man at 25 and not married, there were no grants so go pound sand as I’m paying for most of those you and your side perceive need to go to college, they failed, and your party wants to give them seconds.

          • borborygmi

            Nice try but way off. Put myself through college as an older then avg. student with help of loans.My wife put herself through college., Parents did not have the money to put us through. Sisters put themselves through 2 yr tech schools and brother went back at 40 and put himself through all with loans and working. Two sons went through college both in 4 years both on 1/2 scholarships the rest Bank of North Dakota Loans and working during the summer. One went on to Medical school on a loan and is now 2nd year resident with a contract. The other in the tech industry which wouldn’t have even looked at him without college and pulling down 6 figures.
            So as you so aptly put it “go pound sand” . Not married at 25 so sorry there is some one out there for you.

    • tony_o2

      Or maybe their parents have individual insurance provided by their individual employers and it is not fiscally prudent to pay for a family plan that covers their adult offspring?

    • yy4u2

      Maybe because there (I know it’s their but follow me…) parents took student loans for college when they weren’t ready for it? My parents rarely, if ever, bought things like name brand chips or for that matter, name brand anything. They always had health insurance (bought privately as dad was and still is self-employed) though. Funny how that works eh, Borb. Better to be able to buy what you can afford instead of having it extorted so others can decide what you will get. There, their, they’re and dare (those darn Cherman accents) and all dem dare uses.

  • Albert Lickenspittle

    Classic crap. A lot of college students would not even have insurance coverage were it not for Obama. Spin Rob Spin.

    • jl

      The point, professor, is that most college students don’t want or in most cases, need coverage.

      • alanstorm

        What’s your point? How does that obviate the fact that the plans available are getting more expensive?

        Please try to justify that. I’m sure it will be entertaining.

        • robert108

          It’s a matter of supply and demand. When the govt jacks up the demand, without increasing supply, the cost skyrockets. Econ 101.
          The obamacaretax is jacking up the price of medical treatment, and will continue to do that until it’s scrapped.

      • donwalk

        When the choices are to stay in college because you cannot find employment or stay on your parent’s insurance policy because you cannot afford the increased costs, you are absolutely correct.
        But then the law is the law, is it not? Those taxes (penalties) must be rendered unto B.O.

      • http://proof-proofpositive.blogspot.com/ Proof

        But Obama needs the money. So if he can sell insurance to those least likely to need it, he can use that money to fund the rest. These students and young adults are getting sca-rude.

    • tony_o2

      Virtually all current student insurance plans do not meet ObamaCare’s mandates, and Forbes reports colleges have been forced to drop their plans or raise their premiums rates as much as 1,112% (and no, that’s not a typo).

      If the colleges are dropping the plans, then how do you figure that more students have coverage? And if the colleges are raising the premiums, then how do you figure that more students will be able to afford insurance?

      • robert108

        When the Democrats enter a market, they move to monopolize it.

    • alanstorm

      Horsecrap. Most colleges offer some form of student insurance. And the cost of those plans is rising. Are you blind, or stupid?

      Appropriate name for you, though.

    • robert108

      Who is paying for that? Not obama, that’s for sure.

  • Albert Lickenspittle

    How do the Canadians do it? Oh, I forget, were supposed to pretend their system does not work. Right Rob? Spin Rob Spin

  • ellinas1

    $98 dollars per month for health insurance is a bargain.

    • donwalk

      You failed to mention or explain why the costs went up? Did not President B.O. promise that costs would go down considerably?
      But then, what’s a promise here and what’s a promise there? After all, evolvement is what is important!

      • ellinas1

        Failed? My, you got some nerve!
        It is you who failed to mention that the students get much more for their $98.00 bucks.

        • donwalk

          Here’s something from March 17, 2010 for you to digest, lol!
          Mar 17, 2010 6:45 AM EDT

          FACT CHECK: Premiums would rise under Obama plan
          By RICARDO ALONSO-ZALDIVAR
          Associated Press Writer

          WASHINGTON (AP) — Buyers, beware: President Barack Obama says his health care overhaul will lower premiums by double digits, but check the fine print. Premiums are likely to keep going up even if the health care bill passes, experts say. If cost controls work as advertised, annual increases would level off with time. But don’t look for a rollback. Instead, the main reason premiums would be more affordable is that new government tax credits would help cover the cost for millions of people. Listening to Obama pitch his plan, you might not realize that’s how it works. Visiting a Cleveland suburb this week, the president described how individuals and small businesses will be able to buy coverage in a new kind of health insurance marketplace, gaining the same strength in numbers that federal employees have. “You’ll be able to buy in, or a small business will be able to buy into this pool,” Obama said. “And that will lower rates, it’s estimated, by up to 14 to 20 percent over what you’re currently getting. That’s money out of pocket.” And that’s not all.
          Obama asked his audience for a show of hands from people with employer-provided coverage, what most Americans have. “Your employer, it’s estimated, would see premiums fall by as much as 3,000 percent,” said the president, “which means they could give you a raise.” A White House press spokesman later said the president misspoke; he had meant to say annual premiums would drop by $3,000.

          Subject: [ndsayanything] Re: Not So Affordable: Obamacare Resulting In Dramatic Increases In Health Insurance Costs For College Students

          • ellinas1

            Not just lol, but LMFAO.

            Why did you not post the conclusion of this Associated Press Writer?
            He concludes his article thus:

            “The budget office concluded that premiums for people buying their own
            coverage would go up by an average of 10 percent to 13 percent,
            compared with the levels they’d reach without the legislation. That’s
            mainly because policies in the individual insurance market would provide
            more comprehensive benefits than they do today.
            For most
            households, those added costs would be more than offset by the tax
            credits provided under the bill, and they would pay significantly less
            than they have to now. However, the budget office estimated that about 4
            in 10 customers shopping for an individual policy would not be eligible
            for tax credits – and would face higher premiums on average than
            without the legislation.
            The premium reduction of 14 percent to 20
            percent that Obama often cites would apply only to a portion of the
            people buying coverage on their own – those who want to keep the
            skimpier kinds of policies available today.
            Their costs would go
            down because more young people would be joining the risk pool and
            because insurance company overhead costs would be lower in the more
            efficient system Obama wants to create.
            The president usually
            alludes to that distinction in his health care stump speech, saying the
            savings would accrue to those people who continue to buy “comparable”
            coverage to what they have today.
            But many of his listeners may not pick up on it.”People
            are likely to not buy the same low-value policies they are buying now,”
            said health economist Len Nichols of George Mason University. “If they
            did buy the same value plans … the premium would be lower than it is
            now. This makes the White House statement true. But is it possibly misleading for some people? Sure.”

            http://www.memphisdailynews.com/editorial/ArticleEmail.aspx?id=48641

            You are funny when you try to be deceptive.

          • robert108

            Why don’t you post it on a Reader Blog, instead of whining and begging for someone else to do it for you?

          • ellinas1

            The time is 19.30 hrs.

          • donwalk

            I notice that you are avoiding commenting on Obama’s promises that health care costs would decrease? Why? Here’s his statement for you to comment on and to justify.
            “Buyers, beware: President Barack Obama says his health care overhaul will lower premiums by double digits, but check the fine print. Premiums are likely to keep going up even if the health care bill passes, experts say. If cost controls work as advertised, annual increases would level off with time. But don’t look for a rollback. Instead, the main reason premiums would be more affordable is that new government tax credits would help cover the cost for millions of people. Listening to Obama pitch his plan, you might not realize that’s how it works. Visiting a Cleveland suburb this week, the president described how individuals and small businesses will be able to buy coverage in a new kind of health insurance marketplace, gaining the same strength in numbers that federal employees have. “You’ll be able to buy in, or a small business will be able to buy into this pool,” Obama said. “And that will lower rates, it’s estimated, by up to 14 to 20 percent over what you’re currently getting. That’s money out of pocket.”
            Now back to your attempt to twist opinions of individuals into facts. So why are millions (both businesses and individuals) dropping their coverages due to costs? They certainly are not purchasing higher value policies. Even Obama’s bootlicking unions have been dropping insurance coverage. Just because one individual claims that they are going to purchase higher value policies doesn’t make it happen. You need to get into the real world. This started out in regards to a report about the higher costs of health insurance for University Students, did it not? Please point out where these students are actually purchasing higher value policies and/or even purchasing policies of the original value. Where are your facts? I can see that you fat ass is still there, thinking for you and trying to use theories and individual claims as facts. Costs are going up, deductibles are increasing, coverage is becoming more limited by the day and taxes are going into effect with every new month. Show the readers where and which policies are providing more comprehensive benefits, the readers will be waiting! June 6, 2011
            LOS ANGELES (MarketWatch) — Once provisions of the Affordable Care Act start to kick in during 2014, at least three of every 10 employers will probably stop offering health coverage, a survey released Monday shows. While only 7% of employees will be forced to switch to subsidized-exchange programs, at least 30% of companies say they will “definitely or probably” stop offering employer-sponsored coverage, according to the study published in McKinsey Quarterly. November 11, 2010

          • ellinas1

            donwalk: “I notice that you are avoiding commenting on Obama’s promises that health care costs would decrease? Why?”

            Because you did not, and do not read what I write.
            Now try again:

            “The budget office concluded that premiums for people buying their own coverage would go up by an average of 10 percent to 13 percent, compared with the levels they’d reach without the legislation. That’s mainly because policies in the individual insurance market would provide more comprehensive benefits than they do today.
            For most households, those added costs would be more than offset by the tax credits provided under the bill, and they would pay significantly less than they have to now. However, the budget office estimated that about 4in 10 customers shopping for an individual policy would not be eligiblefor tax credits – and would face higher premiums on average than without the legislation.
            The premium reduction of 14 percent to 20 percent that Obama often cites would apply only to a portion of the people buying coverage on their own – those who want to keep the skimpier kinds of policies available today.
            Their costs would go down because more young people would be joining the risk pool and because insurance company overhead costs would be lower in the more efficient system Obama wants to create.
            The president usually alludes to that distinction in his health care stump speech, saying the savings would accrue to those people who continue to buy “comparable” coverage to what they have today.
            But many of his listeners may not pick up on it.”People are likely to not buy the same low-value policies they are buying now,”
            said health economist Len Nichols of George Mason University. “If they did buy the same value plans … the premium would be lower than it is now. This makes the White House statement true. But is it possibly misleading for some people? Sure.”

            http://www.memphisdailynews.co

          • donwalk

            What is there to comment on – health care costs have increased, therefore he was lying as usual.
            “Buyers, beware: President Barack Obama says his health care overhaul will lower premiums by double digits, but check the fine print. Premiums are likely to keep going up even if the health care bill passes, experts say. If cost controls work as advertised, annual increases would level off with time. But don’t look for a rollback. Instead, the main reason premiums would be more affordable is that new government tax credits would help cover the cost for millions of people. Listening to Obama pitch his plan, you might not realize that’s how it works. Visiting a Cleveland suburb this week, the president described how individuals and small businesses will be able to buy coverage in a new kind of health insurance marketplace, gaining the same strength in numbers that federal employees have. “You’ll be able to buy in, or a small business will be able to buy into this pool,” Obama said. “And that will lower rates, it’s estimated, by up to 14 to 20 percent over what you’re currently getting. That’s money out of pocket.”
            Now back to your attempt to twist opinions of individuals into facts. So why are millions (both businesses and individuals) dropping their coverages due to costs? They certainly are not purchasing higher value policies. Even Obama’s bootlicking unions have been dropping insurance coverage. Just because one individual claims that they are going to purchase higher value policies doesn’t make it happen. You need to get into the real world. This started out in regards to a report about the higher costs of health insurance for University Students, did it not? Please point out where these students are actually purchasing higher value policies and/or even purchasing policies of the original value. Where are your facts? I can see that you fat ass is still there, thinking for you and trying to use theories and individual claims as facts. Costs are going up, deductibles are increasing, coverage is becoming more limited by the day and taxes are going into effect with every new month. Show the readers where and which policies are providing more comprehensive benefits, the readers will be waiting! June 6, 2011
            LOS ANGELES (MarketWatch) — Once provisions of the Affordable Care Act start to kick in during 2014, at least three of every 10 employers will probably stop offering health coverage, a survey released Monday shows. While only 7% of employees will be forced to switch to subsidized-exchange programs, at least 30% of companies say they will “definitely or probably” stop offering employer-sponsored coverage, according to the study published in McKinsey Quarterly. November 11, 2010

          • ellinas1

            donwalk: “Now back to your attempt to twist opinions of individuals into facts….”

            I attempted no such thing. I simply found the article which you partially posted, and posted the remainder of that article.
            We post form the same writer and same article. Somehow your five paragraphs are facts and my two paragraphs are opinion?
            Oh you got some nerve, don’t you?
            Can we have an honest conversation?
            Or if you prefer we both will follow your rules and try to deceive the readers and each other.

          • donwalk

            You tried to state that the reasons for cost increases was the following paragraph: “The budget office concluded that premiums for people buying their own coverage would go up by an average of 10 percent to 13 percent, compared with the levels they’d reach without the legislation. That’s mainly because policies in the individual insurance market would provide more comprehensive benefits than they do today.” The budget office has not been accurate on anything projected when it comes to Obamacare because they can only analyze what President B.O. provided, which was nothing but lies, smoke and mirrors. You then failed to follow up with any facts (now 2.5 years later) to back up your assertion that increased costs were due to more comprehensive coverage. If that was the reason then why did SEIU drop and cancel policies, rather than just reduce benefist and keep coverages for their members?
            I gave you the exact quotes of President B.O. promising that policy costs would go down substantially. That hasn’t happened and in fact, numerous businesses (Including B.O.’s Union Supporters) have actually cancelled their policies and/or coverage. You refuse to even comment on on those promises and pretend that they didn’t ever exist.
            Then you spout off about having an honest conversation – surely you jest!

            Subject: [ndsayanything] Re: Not So Affordable: Obamacare Resulting In Dramatic Increases In Health Insurance Costs For College Students

          • ellinas1

            I did not “try to state reasons” nor did I offer personal opinions concerning the matter.
            I simply posted the remaining paragraphs or the article you posted, and omitted because they don’t fit your narrative and contained conclusions contrary to your assertions.

          • ellinas1

            donwalk: “This started out in regards to a report about the higher costs of
            health insurance for University Students, did it not? Please point out
            where these students are actually purchasing higher value policies
            and/or even purchasing policies of the original value. Where are your
            facts?”

            My youngest is a university student. The offered health insurance this year is far more comprehensive and a bit more expensive.
            The difference between last year and this year is $14.50 per month.

            http://www.health.arizona.edu/pdf/insurance/Univ.%20of%20AZ%20Pamphlet_1112_6.23.11.pdf

            http://www.universityofcalifornia.edu/news/article/25612

            http://uhs.berkeley.edu/students/insurance/BenefitsBerkeleyNextYear.shtml#prescriptions

            http://healthcenter.ucsc.edu/billing/insurance.shtml

        • robert108

          How do you know? Have you asked all of them, and run the numbers?

    • robert108

      Depends on how valuable it is to you.

  • yy4u2

    But everybody has it! Or some ignorant Democrat excuse like that.

  • Jamer Morrow

    The question is where is most of the inflation going? The government prints money to pay for financial aid, medicare, medicaid, etc… This newly printed money is driving up prices. Remember that inflation does not affect all market the same. Costs may go up in some areas and not in others. A typical college student is seeing more inflation than any other age group. Tuition, books, healthcare, food, energy (gas), are the students main expenses. Wages have stayed the same or gone down for college students. Tuition has double if not tripled, same as books, health care costs are skyrocketing, food prices have doubled or tripled, gas prices have tripled. It is government money that is causing this. Production can not keep up with the Fed printing money. All that money is going to push up prices in certain areas.

    • robert108

      Inflation doesn’t “go” anywhere.

    • http://proof-proofpositive.blogspot.com/ Proof

      Government grants and education loans add to tuition inflation. The more dollars that chase the same amount of goods and services, in this case an education, will cause prices to go up. Tuition for higher education has been rising much faster than that caused by fiat currency.

  • colleges in the us

    The team believes
    it’s due to the lack of time pressure and not having to produce a pleasing
    answer for your interrogator.

  • Joe Ruisi

    Over twenty years ago, when the aids “epidemic” created the opportunity for the cause of government intervention, a democrat politician told of their plans to bankrupt the insurance companies and take over. This is nothing new. This is how dictators build their power.

    • Jack1

      That’s pure Bircher nonsense.

      I’d LOVE to completely destroy the health insurance industry with a single payer system. that’s because health insurance companies are parasites. They take your money, skim 30%, and give the rest to your doctor.

      Why do you WANT anyone to skim 30% of your healthcare dollars?

      Seriously, I’m askin’…

  • Jack1

    Teabaggers can’t think for themselves, so they can’t tell you that this story smells fishy.

    Some colleges—all far-right wing ones, as far as I can see—are raising fees two years before the ACA is implemented. Which is odd, since the ACA will lower premiums by creating 30 million new customers.

    But that’s just here in the real world, not in wingnut fantasy land where you live.

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