Grad students are suffering under some provisions of the Affordable Care Act
Grad students from the University of Missouri have lost the health insurance subsidies that they received through the Affordable Care Act. According to the university, grad students are considered by the Internal Revenue Service, which manages federal subsidies for insurance coverage, to be “employees.” As such, many of them are not eligible to receive subsidies from the government. Grad students that have lost access to subsidies may not be able to afford the insurance coverage that they currently have, which may force them to find coverage elsewhere.
IRS considers grad students to be university employees
According to the University of Missouri, it can no longer pay for coverage for graduate students’ health insurance coverage. The IRS considers these students to be employees of the university because they provide research and teaching assistance, which is something that typical students do not do. The university notes that the Affordable Care Act also prohibits employers from providing workers with financial aid that can be used to help them purchase health insurance coverage from the private market. The university must comply with the regulations of the Affordable Care Act, otherwise it will be fined $100 per day per student by the IRS.
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Students continue to face challenges associated with the Affordable Care Act
Students throughout the United States have had trouble acclimating to the new health care system established by the Affordable Care Act. Because many students take work positions on campus, they are considered employees and do not have access to health insurance subsidies. The Affordable Care Act has also had an impact on educators, as universities have had to cut work hours in order to comply with certain aspects of the federal law.
Millennials are facing higher insurance rates
The Affordable Care Act has been the subject of controversy well before it was passed into law in 2010. In Missouri specifically, the provisions of the law led to a 441% increase in health insurance rates for male millennials in the state, according to analysis from the Show-Me Institute. Insurance rates have been on the rise among millennials throughout the country, and many are beginning to rely heavily on government subsidies in order to keep their health insurance coverage.