Editorial: University’s failure to disclose Aon Hewitt settlement erodes trust

By Editorial Board

Two years ago, it was announced that the UC Student Health Insurance Plan – the system-wide health insurance program that all 10 University of California campuses are required to be a part of – was $57 million in debt.

Naturally, this eye-popping number led to more finger pointing than actual solutions with the University claiming that Aon Hewitt, the management company hired to provide logistical and pricing data for the program had massively underquoted the original prices of the premiums since the plan’s inception.

The University sued, and last Monday, a settlement was finally reached between the two entities – an act which ended any legal proceedings, and with it, any chance to shed some light on what caused the University to lose such a massive quantity of money. These details will remain elusive, since according to the terms of the settlement, the University is not allowed to disclose details about it.

This essentially ensures that the only sure losers here are the students. Without clear details about what actually happened, students will never know who exactly to hold responsible for this egregious mismanagement of an extremely important University program.

Premiums have been raised since that time to meet the operational deficit, and UC SHIP is still a good value relative to its peers. But that’s not the point.

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[Source]: Daily Bruin