New Program Allows Colleges to Self-Insure Students

Governor Cuomo revealed a pilot program yesterday that will allow colleges to offer health insurance directly to students in New York.

The Governor and Department of Financial Services Superintendent Benjamin Lawsky announced that Columbia University, Cornell University, New York University, and the University of Rochester will be eligible to self-insure students.

Current law does not allow a New York organization to self-fund a student health plan unless the organization has a license to do business as an insurance company. This pilot program will allow these universities an exemption from this requirement.

These student health plans will be regulated by the Department of Financial Services and the universities will be required to set up reserves to ensure there will be sufficient funds to pay claims.

-Jaime Venditti, 8/2/12