University of Virginia Library

Mandatory Insurance Causes
Confusion During Summer

By Donn Kessler
Cavalier Daily Staff Writer

Over the past summer, confusion arose
among students entering or returning to
the University concerning the insurance
plan sponsored by the Student Council.
Most students received letters concerning
two plans, one by Blue Cross-Blue Shield
of Virginia and one by the Insurance
Company of North America, the plan
recommended by the Student Council.

In past years, Council has sponsored
the plans submitted by Blue Cross.
Students therefore had the option of
taking the Council-supported plan or
having a comparable insurance plan.

All students must certify that they
have at least one plan to be registered as a
full time student at the University.

Last spring, Council investigated other
plans besides Blue Cross due to the rising
costs of the Blue Cross plan. After various
studies, Council finally approved a plan
submitted by the Life Insurance Company of
North America.

Two Letters

Over the summer, however, students
received letters from both the Council and from
Blue Cross, with each asking the students to
sign up for their two different plans.

While the Council letter and information
told the student of the Council's sponsoring of
the LINA plan and of the various advantages of
the plan, the letter from Blue Cross, according
to Student Council President Kevin Mannix,
was very ambiguous.

In that letter, the Blue Cross stated that as
of 1970, the "present Blue Cross and Blue
Shield membership will be transferred to a
NEW, special program offered exclusively to all
full-time college students." The letter also read,
"To continue your coverage as a FULL-TIME
student, please return our remittance no later
than September 1, 1970."

Deceiving Letter

Mr. Mannix, in commenting on the letters,
states that he felt that the Blue Cross letter led
students to believe that the regular
Council-sponsored coverage of students by the
Blue Cross would be continued this year.

According to Mr. Mannix, the insurance plan
issued by the Life Insurance Plan of North
America has various advantages for most
students.

Although the LINA plan costs $70 for the
full year, five dollars more than the Blue Cross
plan, the LINA plan covers students from the
first day of coverage for any intensive care
treatment for conditions existing before the
LINA plan took effect.

Under Blue Cross, there is no coverage for
preexisting conditions until the Blue Cross plan
has been in effect for six months.

Another advantage of the LINA plan,
according to Mr. Mannix, is that the deductible
paid by the students is only $100 Under the
Blue Cross plan, the student must pay a $200
deductible.

Waiting Period

In the area of major medical expenses Blue
Cross states that for a condition to be treated,
it must not have been treated for 90 days
before the policy goes into effect. Under the
LINA plan, there is no waiting period or
preexisting clauses students are to be fully
covered from the first day the plan goes into
effect.

In the area of maximum benefit for major
medical expenses, the Blue Cross plan offers
$5,000 for a 13-month period while LINA
offers $15,000 for 12 months or less.

In hospital restrictions. Blue Cross pays 80
per cent of all benefits in non-Blue Cross
hospitals while LINA pays full benefits in all
hospitals.

Physicians services in home or office are not
covered under Blue Cross while these are