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Student Health absorbs increased cost of birth control

The Deficit Reduction Act of 2005 increased cost of contraceptives for universities; OSU not affected

Nick Vardanega

Issue date: 8/8/07 Section: News
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According to the Wall Street Journal, prices for contraceptives on college campuses are going up as a result of a 2005 bill, but health professionals at OSU say the students will not have to bear the extra costs.

In February 2006, the Deficit Reduction Act of 2005 was passed by congress and signed into law by President Bush. The goal of the bill was to reduce the $39 billion in federal spending for Medicaid and student loans. However, a small detail in the legislation created a disincentive for drug companies to provide colleges with discounted birth control, the Wall Street Journal said.

"The previous setup allowed pharmaceutical companies to sell to university pharmacies at what they call 'nominal pricing,' which was very low," said George Voss, associate director of the Family Planning Project at OSU. "The new administrative rule that implements the Deficit Reduction Act took that away."

Voss said that he did not have exact numbers on how much the price of contraceptives had increased because the cost largely varies between different types of contraceptives and different pharmaceutical companies.

However, Voss said that Student Health Services is absorbing the cost so OSU students will not have to pay extra for birth control.

Voss said that although Student Health Services will be able to afford to absorb the costs, there is no contingency plan for the future.

One of the more prominent effects that the Deficit Reduction Act has had on contraceptives is that students now have to provide proof that they are U.S. citizens in order to be eligible for programs like the Oregon's Family Planning Project.

The Family Planning Project is a program that provides birth control, emergency contraceptives, yearly Pap Tests and family planning counseling and information for people that meet a certain level of financial need.

Voss said that since proof of citizenship is now required they've seen fewer applicants.

"It's been harder, we are seeing fewer visits," he said. "Not every student has access to their birth certificate or has a passport. If they have to ask parents for a copy of their birth certificate, they may not want to say why and then they end up not getting enrolled."

However, during the last biennium the state legislature created a state fund to help pay to locate students' birth certificates. It is also working to set up a system to help students who were born in Oregon locate their birth certificates through Oregon Vital Records, said Stacey Kroese, co-ordinator for the Family Planning Project.

Students who are from out-of-state may have an even harder time locating their proof of citizenship. Kroese said that students from gulf coast areas that were affected by Hurricane Katrina have no way to obtain their birth records
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