Provost Robert A. Brown announced last Friday that MIT will raise graduate student stipends on July 1 by $30 a month to cover most of a $45 a month increase in premium for the optional extended hospital insurance for students.
MIT will also establish monthly premiums so students don't have to make a large payment at the beginning of the year. No finance charges will be assessed in this monthly payment plan.
About four out of five graduate students and two out of five undergraduates subscribe to the insurance. For undergraduates, financial aid will be increased accordingly.
Brown said the premium for the extended hospital insurance will increase to $1,440 a year, a 60 percent increase. An increase of about 20 percent had been anticipated until recently, when it was forecast that a 70 percent increase in premium would be needed to cover costs next year. "The revised premium compares closely to the premiums charged by other northeastern private research universities," he said.
Chancellor Phillip Clay, who announced last week that MIT would increase financial support to help pay the cost, commented, "We are very proud of the extended insurance program we are providing, which is one of the best."
The insurance covers outside hospitalizations, special tests, medical specialists and prescription drugs. It is separate from the MIT Health Plan, which covers routine care, tests and infirmary care by MIT medical personnel. The MIT Health Plan cost ($840 this year) is built into tuition and will not be increased next year.
The current costs for comparable plans for individual hospital insurance from an outside provider range from $3,600 to $4,600 per year. State law requires students to have hospital insurance.
For more information, see /newsoffice/nr/2003/insure.html.
A version of this article appeared in MIT Tech Talk on June 12, 2003.