CC: President Eric Barron; Vice President Damon Sims; and Student Health Insurance Task Force Chair

Dennis Shea.



June 30
th
, 2014
Dear Executive Vice President and Provost Nick Jones,
In only a few short months, students at Penn State will begin to feel the brunt of healthcare changes forced on us by
Aetna. Students across the University will have to find ways to pay for increased out-of-pocket costs and
premiums. At the same time, as part of the most recent strategic plan, Penn State has committed to maintaining
access and affordability and [enhancing] diversity. The strategic plan also lists student success and a
commitment to students as core values of the University. These goals and commitments are clearly threatened by
the changes in healthcare which will, at the least, discourage graduate and undergraduate students who cannot
afford the increased costs from matriculating or completing their studies.
Given the situation and Penn States very noble goals, we, the Graduate Student Association Healthcare
Committee, recommend that Penn State take the following immediate steps to relieve the pressure on students:
1. Provide a $1 million expansion to the existing Emergency Fund, housed under the Office of the Assistant
Vice President for Student Affairs. This increase would put us in line with other Big 10 Schools such as
Ohio State University, which recently increased their own Emergency Loan Program from $850,000 to
$1.85 million. In addition, the University must commit to adequately advertise the fund so that all 85,000
undergraduate, graduate, and professional students at Penn State are aware of it. This Emergency Fund will
be extremely important for ensuring retention of students who are caught in the grips of poverty due to
emergency costs, long term health care, and other living expenses.
2. Increase the current health subsidy for graduate assistants/fellows to 85% for individuals and 85% for
dependents. Funds for this can come from the surplus funds that had been allocated to pay for the 30%
premium increase (which was later reduced to only a 21.5% increase). This would not only help support
existing Penn State students but also strengthen Penn States ability to attract the best and the brightest.
Additionally, increasing the subsidy brings us in line with Ohio States 85%/85% subsidy and closer to
University of Michigans 100%/100% subsidy.
We believe that these two initiatives will go far in reaffirming Penn States commitment to access and affordability
for all students at Penn State. We also know that the money required is a minimal amount compared to what is
spent at Penn State on an annual basis. In comparison, Penn States operating budget for 2013-2014 was $4.2
billion, which was an increase of over $62 million from the year prior. With access to more information about
funding sources we are happy to be partners in finding the best source for the funds. If you have any questions feel
free to contact the Committee Chair, Spencer Carran, at Carran@PSU.edu.
Thank you for your consideration,
Healthcare Committee
Graduate Student Association
The Pennsylvania State University
Graduate Student Association
The Pennsylvania State University
315 HUB Building
University Park, PA 16802
PH: 814-865-4211
FAX: 814-865-3033
Email: gsa@psu.edu