The Martlet

After two months of searching, the UVic Students’ Society (UVSS) has picked a new health plan provider. On Aug. 3, the board of directors passed a motion authorizing the executive directors to enter into a contract for up to three years with health plan broker StudentCare.

UVSS Director of Finance Kelsey Hannan said the UVSS’ Finance Committee thoroughly reviewed offers from four brokers: Student- Care, Gallivan, ACL and Morneau Sobeco, who previously held the UVSS’ health plan contract.

“After a lot of careful review and fair competition between the four of them, we have selected Student- Care as our broker and we’re in discussions of entering into a three year agreement with a two year rate guarantee,” said Hannan. The rate guarantee will ensure Student- Care will not raise premium costs unreasonably once the UVSS has signed a multi-year contract.

“There are expectations in the contract for StudentCare to be competitive with other brokers. If they do not do so the UVSS is fully within their rites to cite them for breach of contract and not continue with them,” said Hannan.

StudentCare was not the cheapest option, as Gallivan underbid them by approximately $2. But Hannan said StudentCare makes the most sense in the long-term.

“StudentCare is not only excited with the opportunity the UVSS has granted them but they will work very hard over the next three years starting right now to ensure we have a plan that is very well maintained, that is not forgotten about, and that provides good coverage for UVic students. I’m very excited myself,” said Hannan.

The new plan, which will be provided by Sunlife Financial, will cost students $229.50 in premiums. The old plan cost $256.08. Both plans offer students the same level of coverage.

“Sunlife Financial is working within the best of its abilities to perfectly match what was provided under Greenshield and I don’t believe students will notice a difference,” said Hannan. “The thing to understand here is that we did not reduce coverage ... and we got a plan that’s over $26 cheaper than the previous plan.”

Hannan said there are other benefits to signing with StudentCare in addition to the cheaper premium.

“The new opt out system will be much smoother, much more advanced and much more efficient,” said Hannan. “The new process will involve going onto the StudentCare website, ihaveaplan.ca, and they can opt out there. They can also learn about their benefits — the benefits are very openly and transparently explained to the student on that website as well.”

Hannan also said StudentCare offers a competitive provider network.

“They’ll go around to providers in the Victoria area and get them to sign on to the provider network and provide an additional 20 per cent coverage on dental benefits,” he explained. While the old plan had a similar network, Hannan said none of the providers were actually in the Victoria area.

However, while students will receive the same benefits as the old plan for $26 less, what exactly is happening to that $26 is still up in the air. This is because UVic’s Board of Governors, not the UVSS, collects student fees, and the amount for the 2010/2011 year has already been set at $288, based on the old plan. That $288 included a $31.92 administration fee that would have partially subsidized Student Union Building (SUB) operations. Now, the administrative fee the UVSS collects will be $60.50, on top of the $229.50 that the health plan premium costs.

While Hannan initially said the UVSS board of directors was looking at possible options for the fee, including a rebate, setting up a reserve fund, or increasing coverage, a motion at the Aug. 9 board meeting has set the direction the board will take.

Director-at-Large Dylan Sherlock introduced a motion to not only rebate the additional $26, but any fees collected as part of the health plan that don’t go towards administrative costs. Last year, the UVSS collected approximately $200,000 in administrative fees, some of which went to help balance the UVSS budget.

Previously, Hannan said it was unlikely the extra funds wouldn’t be collected this year, because SUB operations have grown dependent on them.

“One idea that has been floated in the past, and I think is worth exploring more, is gradual reductions to the fee, and that may be a balance to reach the same aim in a way that is not financially destructive to the society,” said Hannan at the Aug. 9 meeting. “This is not a problem we created; it’s a problem we inherited.”

Director-at-Large Jennifer Bowie agreed with Sherlock that the fee was wrong, and echoed Hannan’s fears about dropping the fee cold turkey. “Dylan’s right, we have been dishonest,” Bowie said during the board meeting, “but past boards have been relying on this fund and I don’t want the SUB to go bankrupt because of it.”

Sherlock, however, disagreed, insisting that keeping any money that is used for a purpose other than for that which it was collected is wrong.

“You can’t say ‘this isn’t our money’ and then say ‘but we should figure out how much it will hurt us to not have this money,’” he said after the meeting. “It’s either money we can collect or it isn’t.”

According to Sherlock, continuing to collect this fee would be a breach of student trust.

“I think it’s important that we have full respect for students and how we’re spending their money and that we’re spending it on the things we’re telling them we’re spending it on, and not on subsidizing failure,” Sherlock said at the board meeting. “This administration fee is a construct — it’s us reducing premiums and pocketing the difference … I don’t see how can allow that to continue.”

Director-at-Large Tara Paterson amended the motion to read that the UVSS “supports in principle” such a rebate. The amendment passed, and the motion was then passed as amended after an hour of discussion and a failed attempt to refer the motion to the UVSS Finance Committee. The process will still be dealt with in Finance Committee, where the committee will determine how much money the administration of the plan actually costs.

“I feel like we’re making a good compromise,” said Sherlock of the amendment. “I was welcome to my motion being amended, and that’s why I was happy when [Paterson] made the amendment.”