OPINION & EDITORIAL
SHIP doesn’t deserve bad rap
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Also by Guest Columnist:
- Stop America's 'green scare' (December 10, 2007)
- Greek sexuality misconceptions unfair (December 6, 2007)
- Security fee shows UWPD's prejudice (December 6, 2007)
- Vote Democrat, vote equal LGBT rights (December 6, 2007)
- Free trade stagnates upward mobility (December 6, 2007)
Related Stories:
- Students beware, SHIP not worthy (October 12, 2006)
- Trick but no treat (March 7, 2002)
- Letters to the Editor: March 8, 2002 (March 8, 2002)
- Opt-out a needed plan for UHS (March 15, 2002)
- Costly Contraceptives (September 1, 2004)
by Guest Columnist
Thursday, October 19, 2006
As the Student Health Insurance Plan (SHIP) Manager, I feel compelled to respond to Pete Heinzelman's column in Thursday's Badger Herald, "Students beware, SHIP not worthy." For the record, Mr. Heinzelman is an account executive with the independent insurance agency The Murphy Insurance Group.
First, it is important to note that unlike an insurance company, SHIP is not motivated by profit. SHIP is administered locally at University Health Services (UHS) and is not reliant on the services of an insurance company or agent. Every cent received by the plan is designated to cover the cost of claims or to improve benefits. Current claims data shows that for every dollar that is paid in domestic premiums, 95 cents are paid out in claims-related costs. Any funds that remain are re-invested in the plan. Most recently, this has allowed us to double the maximum benefit to $1 million and increase the prescription drug benefit to $1,000. At the same time (and despite higher medical costs), SHIP premiums have increased by just 1 percent. These improvements would not be possible if our policy were dictated to us by an insurance company.
As the primary care provider for SHIP members, UHS undoubtedly strengthens the plan. However, it is important to remember that UHS cannot provide all services all of the time. SHIP members also have access to a nationwide network of hospitals, clinics and specialized medical services. In addition, SHIP offers a range of preventative services including travel and meningitis vaccines, a well woman examination and a contraceptive program. SHIP is also one of the first insurance plans to cover the full cost of the new HPV vaccine.
A complete review of SHIP benefits shows that it is one of the most comprehensive voluntary student health plans, not only in Wisconsin, but also in the entire nation. In contrast, students who purchase individual insurance policies often find out too late that they do not actually have access to the coverage they thought they had. Many individual plans promote respectable maximum benefits, but in reality contain policy clauses that prevent members from receiving full coverage when they need it the most. In addition, the plan documents may not be readily accessible, which makes a full review of the benefits difficult.
It is unwise to base the merits of a health insurance plan on cost alone. Doing so can foster a false sense of security. It is particularly irresponsible of an insurance representative to focus on one specific plan clause and attempt to use simple math to promote a particular product. To correlate so-called "rainy day" expenses with plan premium costs is simply illogical. SHIP caters to all eligible students, not just select individuals. If a complete benefit analysis was performed, I am confident that SHIP would prevail.
Enrollment in the domestic plan continues to increase as SHIP establishes itself as the most attractive health insurance option for UW-Madison students. In my experience, I have yet to find a voluntary student health plan that offers better value for the money.
Unfortunately, medical issues are still a leading cause of academic withdrawal. In addition to catastrophic accidents, unexpected illnesses can arise and students with adequate health care coverage are more likely to be able to continue with their schooling. Students may feel indestructible, but it is also important to understand the risks of being uninsured or underinsured. Students with less comprehensive insurance may also be more likely to forgo unanticipated medical treatment because of shortfalls in their coverage. Potential enrollees (including those with no immediate health concerns) should be particularly aware of the limitations of health plans with a high deductible.
We urge every student to review all aspects of an insurance policy prior to enrollment and to raise any concerns with the insurer. Students can also contact the SHIP office for local assistance with any insurance policy related question. Since we are not driven by profit, students can rest assured that we will remain objective.
Richard Simpson (shipmail@uhs.wisc.edu) is the Student Health Insurance Plan Manager at the University Health Services.
Anonymous (October 19, 2006 @ 9:04am):
SHIP must accept all comers at the same price, which obviously means that a healthy person can get the same coverage at a lower price from an organization that can reject the unhealthy.
Look up "adverse selection" as used in insurance terminology.
