Tuesday September 4, 2001

Medical inflation and loss of money blamed for rise

The cost of student health insurance has skyrocketed this year in response to a major loss in profits to the university's health care provider and increased medical inflation, Campus Health officials said.

United Healthcare, the insurance provider for the University of Arizona, made the increase because it was losing money under the old plan, officials said.

"One principal reason was that student health care was not performing financially for United Healthcare," said Kris Kreutz, associate director of Campus Health.

He explained that the previous plan covered all medical expenses whereas now, students will not be insured until after they have met their $250 deductible.

As a result of the change, students who currently use UA health insurance are feeling the effects of the increase.

"The majority of the UA student body is currently enrolled in UA health insurance," said Sharon Kha, the official spokesperson for the UA.

Kreutz said that the plan under United Healthcare covers all three of Arizona's publicly funded universities and was actually losing money on the first-dollar coverage that the company previously provided.

The costs of insurance as well as general coverage have been broadened to accommodate the loss.

"United Healthcare isn't out to make money, and with the new plan, they're expected to at least break even," he said.

He also blamed medical inflation for the increased cost of insurance.

"Just the cost of medical care is eight to 12 percent higher this year, which compares dramatically to the actual economic inflation rate," he said.

According to the Consumer Price Index, the economic inflation rate for 2000 was 3.15 percent.

Kreutz said the cost of co-payments has gone up as well to acclimate to the general inflation of medical costs. The cost of co-payments varies depending on the specific plan the student chooses.

Kreutz said there is another plan run by the state to help with low-income residents. The Arizona Health Care Cost Containment System, a state-funded Medicaid program, is a possibility for some students - especially those with children. Kreutz said a fair number of students have used this program.

The AHCCCS provides health care to those who cannot afford it themselves. Eligibility for this program depends on household or individual income. Officials said most students who are not claimed as dependents for tax purposes qualify, but women are most likely to receive the coverage.

AHCCCS also provides health care for individuals with children.

"Our Kids Care program provides coverage for kids up to age 18," said Frank Lopez, AHCCCS public information director. "The qualification limit rises along with the household income."

Information on AHCCCS and how to apply for coverage can be found on the organization's website at http://www.ahcccs.state.az.us.