News
Healthcare reform
The healthcare reform bill signed by President Obama on Tuesday March 23will bring change to the state of Floridian college students’ healthcare, though the costs and consequences of the bill are still debated among students and professionals.
Unlike the previous policy that allowed dependents to be covered until the age of 22, the new legislation requires insurance companies to allow coverage of dependents up to the age of 26. This legislation has been found favorable among many students, who instead of having to worry about the expense of health insurance upon graduation or post-graduate work can now have the comfort of extended coverage on their parent’s plan.
“A lot of kids in grad school or those trying to get their masters or go to law school have found themselves going a semester or two without insurance,” said Katie Showman, professor of health economics at Florida State University. “Now, they can stay with their parents.”
This legislation isn’t confined to just students. Even young adults who are unemployed or working part time have the option of still staying on their parent’s insurance.
Some students see this as way to protect against unexpected expenses a young adult may face.
“Most of the people who don’t get health insurance, it’s not because they can’t, it’s because they don’t think they need it, and that ends up coming back to bite them,” said Joseph Schweitzer, a junior political science and international affairs major and president of FSU College Democrats. “They decide to go without it for a few years and then get sick in that period and end up with hundreds of thousands of dollars in hospital costs that come back for the rest of their life.”
Other students see the federal mandate of extending insurance coverage as unnecessary government interference with America’s free market economy.
“I’m an advocate of freedom for individuals, and the individuals that own and operate these companies, so the CEO’s of the company, they should be able to run it in the manner they see fit,” said Jesse Deyu, a junior political science major, and member of the FSU College Republicans. “They shouldn’t be required by law to provide you with healthcare up until a certain age. That should be their choice. It’s their company, they own it.”
One aspect of the reform causing major debate is the federal mandate to purchase a health insurance policy. Although there was consideration of the government providing a public option to compete with private insurers, the final bill removed that option. As of 2016, 95 percent of U.S. legal residents are going to have to purchase insurance, or pay a fine of either $695, or 2.5 percent of the individual’s taxable income, whichever amount is greater.
Some constituents, like Dr. Showman, foresee some undesirable consequences of this bill. As she sees it, the mandate would tend to raise insurance premiums. However, the reform requires that insurance companies gain government permission to raise premiums. Because of this government regulation, some insurance companies may not be able to generate profit or cover costs, and thus be forced out of existence.
“I think you’re going to see some insurance companies leave the market, and say there’s just too much government interference,” said Showman.
Another concern is that the bill will help lower the premiums for the elderly or those with pre-existing conditions, but at the cost of higher premiums for younger healthy people, such as college students.
“This is at a time when we need to be saving and investing our money,” said Kendalyn Schiller, a first year criminology major. “When we get out of college, and we’re young and healthy, and we think we’re invincible, we don’t have money to waste on buying higher health insurance premiums.”
Dr. Showman echoes Schiller’s concern.
“Because you’re not allowing people to choose the type of plan as much as they could before, and certain things have to be covered by the insurance company, I think you are going to see younger people have higher relative premiums, and the elderly have lower, or people with preexisting conditions have lower relative premiums.”
The reform has also generated concern over the lack of healthcare workforce to keep up with the inevitable increase in health service demands. With the new reform, Showman says the number of people on Medicaid, the state sponsored health care option, will increase by 50 percent. The strain of this dramatic and rapid increase in customers on the healthcare workforce will create a demand for more healthcare service workers that many people may be reluctant to join because of the increased government interference.
“I think you’re going to see a lot of people maybe not entering the medical profession that were planning on doing so otherwise, just because of the increase in administration and bureaucracy,” said Showman.
Some students remain faithful in the free market economy to take care of the increased demand for health insurance workers.
“I look into it as basic economics,” said Schweitzer. “Students who are coming into college now see that in a couple years there are going to be millions of more people with insurance. That’s money to be made.”
Schiller echoes Schweitzer’s optimism.
“I believe in supply and demand,” said Schiller. “If the free market says, ‘Hey, we need more doctors and nurses,’ then the market will make that an incentive. If doctors and nurses are in short supply, their salaries are going to go up, and more people will go, ‘Hey, look at the salary they’re making. I need to get in that industry.’”
For a legislation steeped in debate on every facet, one point of consensus remains: things are going to change for the health insurance system in America.
“This legislation is huge,” said Schiller. “It’s going to change the lives of every single one of us.”
Originally featured in the April 2010 print issue.








