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HHS PRESS RELEASE
Wed, February 9, 2011 17:55
FOR IMMEDIATE RELEASE
Wednesday, February 9, 2011                                               
Contact:  HHS Press Office                                                       
(202) 690-6343


New Rule Ensures Students Get Health Insurance Protections of the Affordable Care Act

A new proposed regulation announced today by the Department of Health and Human
Services (HHS) would ensure students enrolled in health insurance coverage through
their college or university benefit from critical consumer protections created by
the Affordable Care Act.  Students enrolled in college plans would have the freedom
from worrying about losing their insurance, or having it capped unexpectedly if they
are in an accident or become sick. 

"Thanks to the Affordable Care Act, college students will have more control over
their health care," said Secretary Sebelius. "This rule would ensure that these
plans remain a viable, affordable option for students while guaranteeing that they
are regulated consistently and offer transparent benefits to students." 

Student health plans are often purchased when family coverage is not available, or
is unaffordable.  Approximately 1,500-2,000 institutions of higher education across
the country offer some type of health coverage; however, what benefits are covered
by these plans, as well as how they're regulated vary widely.  The proposed
regulation would ensure students enrolled in these plans benefit from important
consumer protections created by the Affordable Care Act by clarifying that these
plans will be defined as "individual health insurance coverage."  Under the proposed
rules, some of the new health insurance protections include:
* No Lifetime Limits on Coverage: Insurance companies would no longer be able to
impose lifetime dollar limits on the amount they spend on health benefits in student
health plans.
* No Arbitrary Rescissions of Insurance Coverage: Insurance companies can no longer
drop coverage when student health plan enrollees get sick because of an
unintentional mistake on an application.
* No Pre-Existing Condition Exclusions for Students Under Age 19:  Insurance
companies cannot deny or exclude coverage for students under age 19 because of a
pre-existing condition.

Today, some student health plans, only offer limited benefits with low annual dollar
limits on health care, or have limited networks of doctors, and other health care
providers. For many students, these health plans are their only health insurance
option. 

The Affordable Care Act allows HHS to take steps to preserve market stability while
ensuring student health plans remain affordable until all Americans have new
coverage options through the state-based Exchanges that will be established in 2014.
Under the proposed rule announced today, student health insurance plans would be
allowed to have annual dollar limits on essential health benefits of no less than
$100,000 for policy years beginning before September 23, 2012.  Student health plans
with policy years beginning after that date must fully comply with the Affordable
Care Act's annual limit restrictions. 

The proposed rules would also require insurance companies to clearly tell students
enrolled in student health plans whether or not their plan meets the new
requirements laid out under the Affordable Care Act-bringing transparency to this
marketplace and enabling students to understand the value and quality of the
coverage they have.

As a part of the new proposed rule, HHS also is requesting comments on how other
Affordable Care Act protections might apply to student health plans, including the
choice of medical provider and application of the new medical loss ratio rules.

To find the new proposed rule, visit http://www.ofr.gov/inspection.aspx
For a fact sheet on the new proposed rule, visit
http://www.HealthCare.gov/news/factsheets/students02092011a.html
For more information about the new patient protections created
under the Affordable Care Act, visit
http://www.HealthCare.gov 

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Note: All HHS press releases, fact sheets and other press materials are available at
http://www.hhs.gov/news
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