COLUMBIA, Mo. – The University of Missouri says it’s eliminating subsidies that help with health insurance costs for graduate students employed by the school.
The Columbia Daily Tribune reports that university officials say the change is due to a recent IRS interpretation of a section of the Affordable Care Act.
The school said in a Friday letter to students that the law prohibits businesses from providing employee subsidies specifically for the purpose of purchasing health insurance from individual market plans.
Associate Vice Chancellor for Graduate Studies Leona Rubin says the IRS considers the university’s student health insurance plan an individual market plan. Rubin says because of the IRS classification, the school would be fined if it continued to give students with assistantships a subsidy to help with health insurance costs.