5 Ways to Help Cut Secondary Insurance Costs in College Athletics

Finding ways to lower secondary insurance premiums has become a major issue for collegiate athletic departments.

The simple solution to stabilize these costs is to limit the frequency and size of claims on secondary policies. However, it’s impossible to remove injuries from collegiate sports. That’s where primary insurance comes into play: Primary insurance that doesn’t exclude intercollegiate athletic-related injuries is a first step towards cutting secondary insurance costs.

Here are five ways to secure primary coverage for college athletes and reduce secondary insurance plan costs in the process:

1. Find an insurance partner that offers primary insurance verifications. Use such a service monthly or at least quarterly (ideally, at no charge). Augment it by defining specific primary insurance requirements of student-athletes, such as:

• Health plans must cover (not exclude) intercollegiate sports injuries at a minimum of $10,000.
• Carefully review or potentially disallow out-of-state Medicaid or plans with HMO networks.
• Require coverage for outpatient surgery and care within 60 miles of campus, or that it must be accepted at the department’s main medical provider.
• Require the primary insurance deductible be less than $3,000 or an amount the athletic department administration deems appropriate.

2. Work with a broker specializing in athletic insurance. The broker should be able to provide student health plans which include benefits for intercollegiate sports. And if possible, the broker should be referred to the student health administration to revamp the entire student health plan.

3. Set up waiver requirements for domestic athletes. If primary coverage doesn’t meet the waiver requirements, then work with an athletic insurance expert to help find an acceptable primary insurance plan.

4. Offer a mandatory health plan to all international athletes. Such a plan needs to meet J1/F1 visa requirements and include a minimum of $10,000 in benefits. Doing so will save an athletic program from sifting through policies — some that are not always in English — and are often travel reimbursement policies.

5. With the help of administration, implement a campus-wide student accident plan. This plan would cover all students (including athletes) up to $5,000 for any injury claim. This would allow secondary insurance deductibles to increase, reducing the premium.

HUB International’s sports and entertainment specialists are ready to guide the college and university athletic community on the risk management and insurance options needed to stay in the game.