Gee, who saw this coming?

Donna Gordon Blankinship reports for the Associated Press (posted by the Huffington Post):

Colleges Are Getting Out Of The Health Insurance Business

SEATTLE (AP) — The federal health care overhaul is leading some colleges and universities to get out of the health insurance business.

Experts are divided on whether this change will be good or bad for students. Some call it an inevitable result of health care reform and a money-saver for students since insurance in the marketplace is usually cheaper than the college plans. Others worry that more students will go without health insurance since their premiums won’t be folded into the lump sum they pay for school, and they say college health plans offer more coverage for the money than other options.

The main driver of colleges getting out of the insurance business is a provision in the Affordable Care Act that prevents students from using premium tax subsidies to purchase insurance from their college or university, according to Steven M. Bloom, director of federal relations for the American Council on Education, a Washington, D.C., group representing the presidents of U.S. colleges and universities.

Add to that the provision that allows young people to stay on their parent’s health insurance plans until age 26, plus the expansion of Medicaid in some states and the rising cost of student insurance. The result is cheaper health insurance available for students off campus.

But Bloom worries more schools will decide to drop insurance coverage.