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Michigan State University’s Health Insurance Mandate May Constrain Tuition Increases

health insurance mandateMichigan State University (“MSU”) currently requires that uninsured students obtain health insurance as part of its fee structure.  This requirement impacts approximately 14 percent of students. While this requirement is aligned with the Patient Protection and Affordable Care Act’s (“PPACA”) individual mandate, the requirement may negatively impact MSU’s ability to raise tuition.

The Michigan House of Representatives recently passed a budget deal that allocated $9 million to universities that keep tuition and fee increases under 4 percent.  However, “fees” for the 4 percent cap include MSU’s health insurance plan premium.  According to the Detroit News, when MSU’s health insurance premium is added to tuition, the total cost to attend MSU would increase by 11.7 percent.  (The budget deal is scheduled to be considered by the Michigan Senate shortly.)

Therefore, MSU will have to decide whether to forgo the additional funding or continue its health insurance requirement.  Its decision may be an easy one, depending on the United States Supreme Court’s ruling on the constitutionality of PPACA’s individual mandate, which is expected to be published later this month.

For more information on this timely topic, please contact one of the health care law attorneys at Foster Swift.

Categories: Insurance


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Best Lawyers® 2021

Congratulations to the attorneys of the Health Care practice group at Foster Swift Collins & Smith, PC for their inclusion in the Best Lawyers in America 2021 edition. Firm-wide, 44 lawyers were listed. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation and as lawyers are not required or allowed to pay a fee to be listed; inclusion in Best Lawyers is considered a singular honor. Health Care practice group members listed in Best Lawyers are as follows:

To see the full list of Foster Swift attorneys listed in Best Lawyers 2021, click here.