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Fact Sheet: The ACA and Graduate Student Subsidies for SHIP Coverage

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Fact Sheet: The ACA and Graduate Student Subsidies for SHIP Coverage

March 01, 2016

​F​or a number of years, many colleges and universities have provided graduate students with student health insurance plan (SHIP) coverage, at little or no cost, as part of their graduate package. 

On Feb. 5, 2016, the departments of Treasury, Health and Human Services, and Labor issued guidance that this practice is not permitted under the Affordable Care Act’s employer mandate but provided “temporary transition relief” so that institutions could continue providing this subsidized coverage without penalty through the 2016-17 academic year. After the expiration of the temporary transition relief, institutions could face significant fines if they continue providing this subsidized coverage to their graduate students.​​​

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