Student health insurance at my university is in a confusing situation, and I hope someone here can help.
Since the mid-2000's, graduate students who either work 20+ hours per week or receive a fellowship of $10k+ for the year have been required to purchase a student health insurance policy. Currently, that policy is a $250 deductible and 80/20 coinsurance up to the out of pocket maximum ($6k or so).
However, premiums have recently risen (insurance company cites the Affordable Care Act), and so student representatives pushed to have a second insurance plan offered. A high deductible plan ($1500) that also enables students to open and contribute to their own health savings accounts.
However, even after a couple students signed up on the plan, our Grad School decided they don't like the HDHP/HSA option. They decided not to advertise the plan further, and to not allow any advisor to subsidize it. The Grad School says that if students want the HDHP/HSA, they must request a paper application from our Health Center and ask their advisors to increase their salaries as an indirect health insurance subsidy.
The Grad School administrators also say they are afraid of a $100/day IRS penalty if they subsidize the HDHP/HSA plan. The plan was created and offered through the university, so I don't think that is a correct fear, but I'm not sure. Would they be penalized for subsidizing a second plan?
Can they pay 80% of students' premiums on the low deductible plan, but 0% for students on the high deductible plan? And can they encourage students to request a "subsidy" through a salary increase? This seems to allow students to take the salary increase, then sign up for the university's low deductible plan -- in a sense, getting twice the benefit (though no HSA).
Your thoughts are appreciated. I was referred to you all by a financial forum I trust, and as a student would really appreciate your insights.
