Some rules in the new health care law for colleges and universities can avoid them from offering low-cost, limited benefit student insurance policies. Federal authority that can keep offering them is being seeked by them.

This gathered a lot of criticism from critics and they stated that as other insurances, student health plans should be held to the same standards.

Clarification is also wanted by the colleges regarding offering the policies to non-students.

Signed by 12 other trade associations representing colleges, an August 12 letter sent to Health and Human Services Secretary Kathleen Sebelius from the American Council on Education stated that it will not be possible without a number of changes to continue to offer student health plans.

The colleges also stated that to their policies, some of the provisions of the law do not even apply. This includes at least 80 per cent of insurers' revenue to be spent on medical care and also that they can not set annual coverage caps.

HHS spokeswoman Jessica Santillo said, "The secretary has received the letter and looks forward to sending a response."