On Dec. 19, University of Iowa Human Resources sent the following email:

“We are excited to announce that beginning Jan. 1, 2024, Student Health Insurance Plan (SHIP) members will see lower premium costs with coverage that emphasizes preventive and mental health services. Your well-being matters, and this revamped SHIP provides top-notch care without breaking the bank. Stay healthy and financially sound during your academic journey at the University of Iowa.

Highlights of the new SHIP:

• Lower monthly premium cost
• Preventive services are fully covered.
• $0 cost for in-network mental health office visits
• Free access to Doctor on Demand telehealth (online medical providers for urgent & preventive care, mental health, and therapy)”

Those highlights do not tell the complete story, especially for students who rely on health care services to survive. In addition to reading this letter, I recommend that each student check if their providers will remain “in-network,” as visiting providers NOT “in-network” will cost you more money.

To be covered, you pay a monthly premium. For an individual in 2024, the premium will be $52 less per month ($624 for the year). For a student + family in 2024, the premium will be $427 less per month ($5,004 for the year). Note, this decline will be much less valuable to graduate assistants who pay premiums with pre-tax dollars.

Once insured, anyone who uses health care services will be subject to a deductible (how much you have to pay before insurance “kicks in”). The deductible increases from $300 per person to $500 per person. Once you meet the deductible, you’ll begin paying a proportion of each service. Sometimes this is a flat fee (“co-pay”). For in-network providers, you’ll pay ~$15 to $100 more per service. Sometimes you pay a percentage (“coinsurance”), which are 2-4x higher in 2024. To put this in context, for a $10,000 charge you would pay $2,000 to $3,000 more under the new plan.

Eventually you will hit a ceiling, or maximum out-of-pocket cost. This ceiling rises in 2024, for both health care and prescription costs. If you hit your maximum in 2024, your costs will rise $2,600-$6,600 for individuals and $1,500-$9,500 for families.

Unfortunately, a Ph.D. in Health Policy is often required to understand our health care “system.” As a health insurance scholar, I hope this letter illuminates how UI’s change might impact your health care costs in 2024.

— Jason Semprini, Ph.D.

Postdoctoral Scholar at the University of Iowa College of Public Health