Update on Health Care

College administrators are facing challenges dealing with Health Care Cost Containment. Our administration is facing unbelievable challenges as we move forward. As you review your benefits, we see increases in deductibles and the insured person’s financial responsibility for their portion of insurance. Further, there are decreasing benefits . . . all pointing to increased health care costs. The challenge for college administrators continues to be: find ways to cover the claims primary insurance does not. Those student-athletes with no insurance, must be dealt with.

No longer is it prudent to accept (as college administrators or departments) a simple percentage discount off of medical charges. Insurance companies reap significant discounts for services; and it is prudent for Athletic Departments to obtain such discounts for student-athletes. This standard of care must be done to stay on the cutting edge of providing services today.

Finally, today’s health care reform has no provisions for cost containment or the rising cost of health care to the insured. This rising cost is facing college administrators as they must deal with the portion of care that is not covered. Based on the literature and recent trends; it seems prudent that out-of-pocket medical costs which have been covered by college athletic departments could increase three-fold in the coming years. Yes, three-fold. An institution with out-of-pocket health care costs of $300,000 will approach $1 million in the next couple of years!

In closing, failing to plan is planning to fail.

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