The President of Illinois Wesleyan University says the private school in Bloomington had steep cost increases for student health policies because of the Affordable Care Act. Dick Wilson says coverage prices went from $200 to $1500.
"Unfortunately, we had to pass those along to the students that enrolled this past fall. If they didn't have coverage through their parents' plan and they wanted to elect our plan, we had to increase the charges to them for that plan."
Wilson also tells WGLT that Illinois Wesleyan will have to carefully monitor the coverage it offers its employees over the next several years as implementation of the law moves forward. Wilson says IWU may incur penalties for offering coverage that is too generous under the act by 2018.
The reform law has a so-called anti-Cadillac provision that fines employers for offering plans that don't charge workers enough for co-payments. The policy reason is to encourage people to think carefully whether they really need a doctor before accessing the medical system. The provision creates a 40% penalty if the annual value of a plan surpasses $10,200 for individuals or $27,500 for a family. Future inflation may also affect the threshold.
Support Your Public Radio Station