Michigan State U's Health Insurance Requirement Could Restrict Tuition Increase

Ann McClure's picture
Monday, June 4, 2012

Michigan State University's student health insurance mandate may restrict its ability to raise tuition next year under a budget deal for universities passed Friday by the state House.

The $1.39 billion higher education budget for the next fiscal year includes $9 million universities can apply for a part of if they keep tuition and fees under 4 percent. A provision added to the final budget makes MSU's health insurance plan for students a fee and subject to the 4 percent cap.

Tuition and fees for in-state students at MSU this year is $12,822. When the minimum $1,505 annual cost of MSU's health insurance premium is tacked onto tuition, the total cost to attend the East Lansing school would increase 11.7 percent, a Detroit News analysis shows.

The state House held a rare Friday session to finish operating budgets for public schools, community colleges and universities. The plan splits up $36 million in new money for the universities into four pots based on graduation rates; research and development; degree completion in math, science and engineering; and tuition restraint.

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