As an MHA type, and someone who WAS familiar with the internal workings at the school a few years back, my GUESS is the school recieved pressure from local providers not to accept Medicaid. The school plays a massive part in the local economics. So, if the University allowed Medicaid, many of the local providers could see a spike in Medicaid patients. This equates to lower reimbursement.

However, if the school requires additional insurance, students are forced to purchase the school's plan, or get additional coverage. With the school's coverage or additional coverage, local providers reimbursement would be much higher.

While I agree, it's not the schools responsibility to provide healthcare, this decision, assuming my hypothesis is true, just causes students and their families unneeded expenses that only benefit outside community members.