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ERIC Number: EJ1141770
Record Type: Journal
Publication Date: 2017-Feb-27
Pages: N/A
Abstractor: ERIC
ISSN: ISSN-1938-5978
Collaborating to Cut Costs in Higher Education
Hassett, Tracy
New England Journal of Higher Education, Feb 2017
Tuition prices at colleges and universities are high. It is also true that salaries and benefits are the single biggest chunk of every higher education institution's (HEI) budget. And one of the largest and most difficult costs to contain is group employee health insurance. The situation is particularly difficult for smaller New England HEIs because they don not have the power to bargain with commercial insurers. They are forced to fend for themselves in negotiating for benefit packages, whose costs--including all benefits paid for by the employer and employee--have increased on average 20% over the past five years. Thanks to a grant from the Davis Educational Foundation (DEF) and investment by 22 other institutions, the Collaborative Educational Ventures of New England (CEVoNE) was formed. Of those 22 institutions, six created a startup called Educators Health (edHEALTH), building on the collaboration model. EdHEALTH currently comprises a dozen small and midsized education institutions, which own and govern the organization. Instead of reducing benefits and limiting plans, these institutions, which may be competing for students, are collaborating on controlling healthcare costs. The schools contract with traditional insurers for the administrative work, but instead of paying claims from a commercial insurer, they are paid out of pooled resources, thus spreading the risk. EdHEALTH is an independent organization with members who are also in the Boston Consortium, the Higher Education Consortium of Central Massachusetts, and the Association of Independent Colleges of Rhode Island. EdHEALTH's collaboration to cut costs in higher education is presented in this article.
New England Board of Higher Education. 45 Temple Place, Boston, MA 02111. Tel: 617-357-9620; Fax: 617-338-1577; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A