Editorial: UC SHIP deficit must be solved sooner

It is no secret the University of California has a large budget deficit. But the UC Student Health Insurance Plan is also facing an estimated $57 million deficit – a shortfall that could take a jab at students’ pockets starting next year.

With the upcoming school year just seven months away, we don’t know yet how exactly the UC SHIP’s deficit will be addressed – and that is problematic.

As part of a worst-case scenario, insurance premiums for UCLA next year could increase by approximately $450 for graduate students and approximately $250 for undergraduate students, according to a memo from the UC Student Health Advisory Committee. Benefit reductions for users of the insurance plan are also on the table, among other options.

The decision will ultimately fall on the shoulders of chancellors at the UC campuses and is expected to be reached by June 1, said University spokeswoman Brooke Converse. She added that the UC is looking at “all possible options” and is trying to give interested parties a chance to voice their opinions on how to deal with the deficit.

Campus-level committees are currently discussing ways to address the deficit and will then report to a systemwide steering committee that will be responsible for drafting a formal recommendation to a council of chancellors.

This board understands these decisions will take time to reach, but June 1 is too late to reach a decision, especially considering that prospective and current students will have accepted their offer to attend UCLA by then.

If the UC approves the premium hike and the UCLA Financial Aid Office cannot cover those increases, students may have to take out loans to accommodate the increase, said Ronald Johnson, director of financial aid at UCLA.

Additionally, financial aid offices would need to re-evaluate their financial award offers, which would be an added burden for staff at the offices and would cause undue stress for students.

While we understand the UC’s need to close the budget gap and maintain the quality of its insurance program, it would not be right to blindside students and inform them of a fee hike after they have committed to a UC school.

We therefore urge the University, campus administrators and student representatives to work together to expedite the decision-making process to ensure prospective and current students are not surprised by these fee hikes later on.

University officials should also inform incoming students about the possibility of changes to the SHIP, so they can have adequate time to make arrangements on how to pay for the increases before they commit to a UC.

Unsigned editorials represent the majority opinion of the editorial board.

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