Risk Strategies Annual Education Practice Student Health Plan Survey Finds Controlling Cost Reemerges as Primary Concern; Student Mental Health Drops to Third
25 Abril 2024 - 8:30AM
Risk Strategies, a leading national specialty insurance brokerage
and risk management and consulting firm, today released the
findings of its Third Annual Student Health Plan Benchmarking
Survey, which showed controlling costs once again ranking as the
top concern among university and college student health plan
administrators. The survey results also showed mental health
coverage continues to be a top-three priority for plan
administrators.
The survey of approximately 140 colleges and universities,
conducted midyear 2023, revealed that the average student health
plan cost mean increase rose in 2023 by 4.7%. In the past two
years, student health plans had seen a full 5% rise in mean
increase. Analysis of this year’s survey responses indicates that
the slight downward shift is primarily driven by fewer schools
having rate increases of over 10% in 2023 compared to 2022.
A top concern this year is the emergence of understanding cost
drivers through data analytics. Almost three-quarters of
respondents, 73%, rated this approach as a priority to
understanding plan costs, a significant increase from the 60% of
respondents who cited it in 2022.
“In this third year of our annual survey, we see clear signs
that student health plan administrators are looking not only at
costs, but overall value,” said Terry Lyons, National Education
Practice Leader, Risk Strategies. “It’s encouraging that we’re
seeing a slight drop in overall costs, even as benefits remain
essentially the same.”
Additional survey findings of note include:
- For colleges with waiver or opt-out
enrollment, more (75%) are verifying other coverage. And the number
of schools that verify 100% coverage jumped to 85% from 70% the
prior year. Higher enrollment is a factor in stabilizing
rates.
- Plans covering only international
students had lower costs compared to domestic plans even with
comparable ACA benefits. Rates were 26% less than undergraduate
student rates and 42% less than graduate student rates. However,
most schools (74%) have a combined domestic/international
plan.
- The average annual deductible has
remained close to $300 for the last three years, as well as primary
care office visit copays at $20 and generic prescription drug
copays at $10. Low out-of-pocket expenses support the overall value
of student plans.
- Fewer than one-quarter (23%) of
plans provide a subsidy for graduate level students. When subsidies
were provided, most represented 75% or more of the plan cost.
- Virtually all (97%) plans are PPOs.
The competitive landscape reflects the national footprint which
includes Aetna, Blue Cross Blue Shield, Cigna, and United
Healthcare.
As with the 2022 survey, colleges and universities listed
addressing mental health needs as a top concern. Almost
three-quarters, 74%, of respondents in the 2023 survey cited it as
a top priority, compared with the 2022 survey in which mental
health tied with managing plan costs as a top concern. The slight
drop in mental health as a priority comes with signs colleges are
directing mental health efforts into new wellness programs. Just
under three quarters of 2023 survey respondents indicated they
offer wellness programs featuring therapy visits, 24/7 crisis
management and psychiatry visits, and of those 70% of colleges
offer programs to all students on campus.
Additional information on the survey and key findings, including
wellness, co-pays, ancillary products, and other key features are
here.
To learn more about Risk Strategies, please visit
risk-strategies.com.
About Risk Strategies
Risk Strategies is the 9th largest privately held US brokerage
firm offering comprehensive risk management advice, insurance and
reinsurance placement for property & casualty, employee
benefits, private client services, as well as consulting services
and financial & wealth solutions. With more than 30 specialty
practices, Risk Strategies serves commercial companies, nonprofits,
public entities, and individuals, and has access to all major
insurance markets. Risk Strategies has over 100 offices including
Boston, New York City, Chicago, Toronto, Montreal, Grand Cayman,
Miami, Atlanta, Dallas, Nashville, Washington DC, Los Angeles, and
San Francisco. RiskStrategies.com.
Media ContactAlana Bannan Account
Executive360-975-1812Rsc@matternow.com