Dear students and parents:

I am writing to inform you of an important change to the Rutgers health insurance plan. You may know that New Jersey law requires that all full-time students who attend state colleges and universities have health insurance. For many years, Rutgers helped students meet this obligation by providing the required coverage as part of the student health services fee.

In response to concerns raised by students and their families, beginning with the fall 2011 semester health insurance coverage will no longer be included in the student health services fee. Full-time undergraduate and graduate students will now have a choice in how to meet the state's health insurance requirement, either by using an existing health insurance plan or by purchasing a university-sponsored policy.

There are sound reasons for this change. In the past three years, the premiums on the student health insurance plan have more than doubled, and the associated costs to students have increased accordingly. Premiums are likely to rise again when the Affordable Health Care Act, a new federal law that mandates higher coverage limits, goes into effect in fall 2012. As a result, Rutgers has received many requests from families of already insured students asking the university to end the mandatory health insurance fee and give families the choice of using their existing private coverage.

While this change will result in savings for most Rutgers students, we realize it will increase costs for others. Given escalating health insurance premiums and state and federal laws, however, we believe that the fairest system is one that gives students the option to choose what is best for them and their families.

Full-time students already covered by a health insurance plan will not need to purchase additional insurance. They will, however, be asked to verify coverage by providing information usually found on their health insurance identification card. Students can provide this information either through a pre-enrollment verification process or through the insurance verification form that will be part of the electronic term bill students will receive in late July. Private, employer-based, governmental, Medicaid and Medicare health insurance policies will all be accepted as proof of insurance.

To ensure compliance with state law, full-time students who do not have health insurance must select an insurance plan offered through a national provider with whom Rutgers has contracted to provide low-cost health insurance. The cost of the selected plan will be added to the student's term bill. Although final details are still being negotiated with the insurance provider, we anticipate that the basic health insurance plan will cost approximately $375 per semester. Other health insurance plans that provide greater coverage will be available to students as options for higher premium rates.

Part-time students are not required to have health insurance, but have the option to enroll in the university-sponsored plan at a higher cost. In addition, students who already have insurance but want to take advantage of the coverage limits and the low cost of the Rutgers plan will have an opportunity to enroll voluntarily as part of the insurance verification process. As it becomes available, further information will be provided at http://riskmanagement.rutgers.edu.

Students will soon receive an email with information on how you can verify your insurance carrier prior to receiving your term bill. A link to the verification site will also be provided on the Student Accounting website at http://studentabc.rutgers.edu.

As insurance premiums continue to rise, we are doing all that we can to provide health care options that are well below market rates and meet federal and state requirements. Rutgers students will continue to have access to the Student Health Centers on every campus, a service that is supported by general fees. The university's goal is to give students fair and affordable choices in a rapidly changing health care market.

Sincerely,

Gregory S. Blimling
Vice President for Student Affairs