While NIU students are expected to pay about $140 per semester for health insurance next year, Illinois State University students will pay about $66 per semester.

In their battles against increasing insurance rates, NIU and ISU were slated to have new insurance carriers approved by the Board of Regents in Springfield last week.

But NIU did not agree with a justifiable choice in time for the board’s approval. NIU will present its chosen carrier for approval in May.

NIU student health insurance currently costs $78.40 per semester.

“I think students should be warned. Student insurance will be in the neighborhood of $140 a semester next fall,” said NIU Student Insurance Manager Regina Crosby.

The Regents approved ISU’s lowest bidder, Associates Life Insurance Co. of Greenwood, IN. The company offered a 31 percent increase from $50.50 to $66.50 for next semester.

No specific factor can be blamed for the cost difference between NIU and ISU, Crosby said.

One outstanding difference is the number of students who stay enrolled in the insurance program at each school.

About 5,000 NIU students request insurance refunds, Mills said. About 1,200 ISU students get their fee refunded, said ISU Student Insurance Manager Bonnie Crutchley.

The pool of NIU policy holders is considerably smaller. About 12,000 students stay enrolled in NIU’s insurance program. About 18,000 ISU students keep the insurance.

“It’s the law of numbers. The larger the pool of premium payers, the easier claims-reimbursement costs can be beared without raising costs,” Mills said.

“Adverse selection” also raises costs at both schools, said Mills and Crutchley. This means those who keep the coverage do so because they expect to submit more claims.

Insurance carriers for ISU and NIU offer coverage to spouses and students’ dependents.

Mills and Crutchley said non-student insurance rates will no longer be subsidized with student premiums. Non-student claims, typically more expensive, will now be calculated separately at both schools to keep student premiums low.

ISU therefore will raise spouse premiums from $165 to $1,078 per year. Child premiums will increase from $223 to $1,459 per year, Crutchley said.

Similarly, NIU premiums for spouses will jump from $250 to about $1,400 per year, Mills said. Premiums for children will increase from about $195 to $600 per year.