Health Care Law Blog

Michigan State University’s Health Insurance Mandate May Constrain Tuition Increases

Michigan State University (“MSU”) currently requires that uninsured students obtain health insurance as part of its fee structure.  This requirement impacts approximately 14 percent of students. While this requirement is aligned with the Patient Protection and Affordable Care Act’s (“PPACA”) individual mandate, the requirement may negatively impact MSU’s ability to raise tuition.

The Michigan House of Representatives recently passed a budget deal that allocated $9 million to universities that keep tuition and fee increases under 4 percent.  However, “fees” for the 4 percent cap include MSU’s health insurance plan premium.  According to the Detroit News, when MSU’s health insurance premium is added to tuition, the total cost to attend MSU would increase by 11.7 percent.  (The budget deal is scheduled to be considered by the Michigan Senate shortly.)

Therefore, MSU will have to decide whether to forgo the additional funding or continue its health insurance requirement.  Its decision may be an easy one, depending on the United States Supreme Court’s ruling on the constitutionality of PPACA’s individual mandate, which is expected to be published later this month.

For more information on this timely topic, please contact one of the health care law attorneys at Foster Swift.

Categories: Insurance