November 17, 2008

Cuomo Is Investigating College Ties to Student-Health Insurers

New York’s attorney general, Andrew M. Cuomo, has sent subpoenas and other information requests to a number of colleges about their relationships with health-insurance companies that cover students, in an attempt to investigate whether colleges are receiving improper payments in exchange for requiring their students to use a particular insurer, according to The New York Times.

Among the institutions from which Mr. Cuomo has sought information, the newspaper said, are Columbia, Cornell, and Georgetown Universities; Sarah Lawrence College; and several campuses of the State University of New York. Mr. Cuomo’s office has asked for such documents as copies of colleges’ requests for proposals from insurers, contracts with insurers, statistics on premiums paid, and information given to students about available policies, according to a spokeswoman for SUNY who was quoted in the Times article.

“We are primarily focused on whether insurance companies are paying schools to push students into health coverage they don’t really need and shouldn’t really want,” the newspaper quoted Benjamin M. Lawsky, special assistant to the attorney general, as saying.

The article noted that parents have complained about rules at some colleges that require students to buy health coverage even though many of them are insured by family policies.

Mr. Cuomo already has conducted a series of investigations into colleges’ practices. He led a high-profile probe last year of conflicts of interest in student lending. He also has investigated college study-abroad offices and private providers of overseas programs, asking about their business practices and financial arrangements with colleges. On another front, he sent out a series of subpoenas asking institutions for details on their college-branded credit cards. —Sara Hebel

Comments

1. We really need Cuomo to investigate the ties of General Motors, Ford, and Chrysler to Capital Hill. Do you think that he will find any connections there?

   — Dale    Nov 17, 03:29 PM    #

2. The company that administered the health plans at Columbia and NYU in 1999 needs to be investigated. All of my students had problems with that crooked outfit. I can’t remember the corporate name — but they took premiums and denied coverage routinely. Students, in turn, would reject care. Then, after the student was no longer eligible for coverage, this company would change its mind and say they would have covered “X” procedure.

   Go Cuomo.

   BTW, Columbia is fraud central.

   — Maddie    Nov 17, 03:37 PM    #

3. Mr. Cuomo needs to team up w/ Sen Grassley and look into the number of college presidents that sit on boards of large companies. I’m sure that he would uncover a lot of graft!

   — Tom G.    Nov 17, 03:41 PM    #

4. Two years ago, I would have said “Oh please” – no more; this is probably an overdue investigation. Also, I have sympathy for students who have other coverage and don’t want the expense of buying additional coverage; at the same time, I have sympathy for administrators trying to be certain that all of their students are adequately covered. the easiest approach is to simply say that everyone has to buy insurance – but it should be possible to create a system whereby the student provide proof of outside insurance each semester to receive a waiver of the requirement to purchase insurance.

   This especially becomes a problem for health professionals students who sometimes injure themselves in the course of completing clinical learning experiences and receive treatment in the facility ER – which expects to be paid for the care given – the college/university certainly cannot assume that responsibility and it isn’t the hospital’s responsibility – the students are guests there – so someone has to be clearly designated as responsible. In lieu of requiring students to demonstrate insurance status, my school simply makes it VERY CLEAR to students that they are responsible for any medical costs for treatment of injuries incurred during clinical learning experiences, regardless of whose “fault” the injury is.

   — TDD    Nov 17, 04:02 PM    #

5. These and similar arguments about health care and its costs will continue until health coverage in the US is tied only to basic citizenship. Conflicts of interest, excessive strains on businesses—large and small—because of health care costs, and significant losses to both the economy and, more importantly, the general well being of the citizenry will be resolved, not by arguing these sorts of details but only by providing adequate health care for all citizens. And the simpler the system the better. Why not cover health care and Social Security with one flat tax on all personal income—regardless of source and with no maximum cutoff (why should people get a break because they have higher incomes?).

   — johntee    Nov 17, 05:10 PM    #

6. Johntee, if I understand you right, you are saying that we are obsessing about the symptoms and disregarding the underlying disease? I don’t know about your solution, but I like the idea of fixing the health care system rather than putting a bandaid on this university’s policies and then that university’s policies, and then the other university’s policies…

   — Shar    Nov 17, 10:31 PM    #

7. Maybe Cuomo will cause student insurance rates to go up just like the cost of student loans has risen since he “reformed” that system. Be careful what you wish for.

   — IN    Nov 18, 06:37 AM    #

8. There are systems in place where schools require insurance, but if a student can prove outside health insurance that is comparable to the sponsored plan, they can waive the school insurance.
   I work for a company that administers ‘hard waiver’ insurance plans for 13 colleges and universities. All of the schools we work with provide such an option.
   With the schools we adminster, the schools work diligently during the request for proposal process to shop for the most economical yet comprehensive plan available for their students. These schools DO NOT receive compensation from the insurance company in any form.

   — DN    Nov 18, 09:22 AM    #

9. DN—you’re right. Most schools do provide an option for students to opt out of the study abroad insurance as long as they can provide proof of coverage outside the U.S. My concern is that I see many students come to our offices with “proof of coverage” but the reality is that most U.S. insurances (unless parents are in the military) do not cover the most basic medical needs abroad, even though they say they do. What they do is have the student pay for the services up-front, which can costs thousands of dollars, and then they reimburse the student upon return. As we all know, insurance companies decide what will be refundable, if anything, so the students are taking a risk of not getting reimbursed for all their medical expenses.. In addition, I have yet to see a U.S. insurance cover repatriation of remains.

   Like IN says…be careful what you wish for.

   — IJB    Nov 18, 12:57 PM    #

10. With all due respect to PETA, let’s kill two birds with one stone and have Mr. Cuomo replace Ms Spellings in ED when she retires (early? see other Chronicle item today). Just one more step in his plan to go national with his political aspirations.

    — KDC    Nov 18, 01:08 PM    #

11. In the UK and Denmark everyone living, residing and working and/or studying in these countries is covered, NOT JUST CITIZENS. If one pays tax in Denmark and the UK, one is covered by their national health plans. Australia has a similar plan and has reciprocity agreements with both countries. But if you are an American in Australia, then you are not covered and your end up buying private health insurance in a country which has a national health plan, which means you are in a large minority and have no one representing you in the Australian parliament. So high premiums and minimum coverage. Sounds like the same coverage we give to foreign students in the USA. Now not only foreign students, but to our own children. Hopefully Obama tries to follow up on the good work of Bill and Hillary Clinton to get a Danish and UK type national health plan in the USA. Wait, was it not Obama, Howard Dean, John Edwards and many other democrats who prevented Bill and Hillary from putting their plan into action. Is not that one of big reasons why the DNC, John Edwards and Howard Dean backed Obama and NOT HILLARY, so that Hillary would not get a chance to try to complete the work she and Bill started? I guess my idea for Obama was not so good after all!!

    — KJJ    Nov 18, 03:48 PM    #

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