Price Negotiation Process & Updates
Background
The NOSMUSC health plan was initially implemented based on national average estimates. For the 2022-2023 academic year, the price was set at $371.17. Due to higher-than-expected student usage, this fee increased to $409.43 for the 2023-2024 academic year, as determined in winter 2023. This increase was based on projected usage for the entire 2022-2023 academic year.
Current Situation
In February 2024, we received the first comprehensive report on user data for the 2022-2023 academic year:
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NOSMUSC paid $75,000 in fees for the period of September 1, 2022, to August 31, 2023.
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Claims for the same period totaled $203,000, resulting in a usage rate of 269% - significantly exceeding insurance industry standards.
Price Adjustment
In response to this high usage rate, our insurer initially proposed increasing the price to over $650.00. Through negotiations, our insurance broker successfully secured a lower rate of $552.73 for the 2024-2026 period.
Decision-Making Process
The NOSMUSC Executive group carefully evaluated this information and decided to accept the fee increase while maintaining the current benefits package. This decision was made at the March 2024 Executive Meeting, considering factors such as high student benefit usage, limited decision time, and lack of immediate alternatives. You can review the March 2024 Meeting Minutes here.
Future Considerations
We recognize that this increase may be concerning for many students. Please be assured that we are actively exploring future options, including:
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Modifying the type of plan
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Offering multiple plans at various price points
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Exploring different insurance providers
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This topic will be addressed at our upcoming NOSMUSC Fall AGM (date to be announced). We encourage you to share your feedback with us, your student year representative, or me directly. If you have any questions or concerns, please don't hesitate to contact the NOSMUSC Executive team.
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Student wellness, both health and financial, remains a top priority for the NOSMUSC. We continue to encourage students to utilize their health benefits as we navigate these changes. Our commitment to advocating for our student population's needs, supporting you, and ensuring access to necessary health benefits remains steadfast.
If you have any questions or concerns, please don't hesitate to reach out to the NOSMUSC Executive team, your Year Representative or the president (email sc.president@nosm.ca).