Pilot program to let colleges offer health insurance

NYU and Columbia are getting into the health insurance business.

The two city universities -- also known for their massive real estate portfolios -- are among four in the state that will start offering cheaper health insurance to students under a pilot program, Gov. Andrew Cuomo announced Wednesday. The other schools are Cornell, and the University of Rochester.

The schools are required to spend at least 82% of what they collect on health care costs, the same as other insurance providers.

Most students are eligible to stay on their parents' insurance plans, but Cuomo said the new plans will be a low-cost option to those that need it. The pilot could be expanded if it's deemed successful.

Spokesmen for all four schools did not say when they would start offering the insurance plans, or how many students they expect to participate.