Next year’s almost-doubled NIU student insurance premium is symptomatic of a nationwide menace.

Insurance consultant Steve Beckley of Byerly and Company, Englewood, Colo., helped NIU analyze new insurance carrier bids for next semester.

“Many businesses offer health insurance for $450 to $700 per year,” Beckley said. NIU student insurance will soon cost about $300 per year.

He cites many reasons why health insurance is skyrocketing nationwide.

Medical care is more expensive. “Medical workers expect higher pay,” he said.

Government subsidies have decreased. “Medicare and Medicaid pay a set price for each type of treatment rather than an across-the-board percentage,” he said. “Practitioners often don’t get reimbursed for the full cost of the care they give, so they pass along the cost to those who don’t use government subsidies.”

Society is graying. “So the number of people paying their bills with government subsidies is increasing,” he said.

Customers expect the latest in medical technology. “The assumption we make is that newer inventions mean better health care,” he said. “But, unlike in other industries where new technology pays for itself through increased efficiency, medical technology does not yield greater cost efficiency it just increases overhead expenses.”

Catastrophic medical care is increasing in cost and capability. He said, “While our capacity to treat serious injuries and illness is increasing, the cost of intensive care is also rising.”

Courtroom medicine. “Many doctors do extra tests now so if their judgement is ever questioned (in a malpractice suit) they can justify their diagnoses,” he said. “And this means more insurance claims.”

State benefit mandates. “Some states mandate that certain types of treatment be covered by all employee insurance plans. For example, mental health care is mandated in Illinois,” he said.

It increases the list of treatments covered and therefore the number of claims, he said.

“The biggest factor affecting student insurance rates is that we set the rates in the spring (to be effective in August) before summer claims are submitted,” he said.

Officals must estimate the total to set the next school year’s rates. “If the estimate falls short, students make up for it in the rates a year later,” Beckley said.