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Increase in Insurance Premiums
Benefits & Compensation
Increase in Insurance Premiums
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
I am hearing from several people that the increase in the employee portion of health insurance premiums for their companies for the next Plan Year are going up by a very large percentage. The reason b
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Forums » Topic Forums » Benefits & Compensation » Increase in Insurance Premiums
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Increase in Insurance Premiums
posted at 10/13/2010 11:33 AM EDT
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Posts: 1
First: 10/13/2010 Last: 10/13/2010 |
Our plan year is from Aug 1 to July 31st, so we went through Open Enrollment in July. Aetna came back to us with a 17% increase that we got down to 14% through our broker. I think that is still outrageous!! We are a small company, with approximately 60 employees enrolled. |
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Increase in Insurance Premiums
posted at 10/13/2010 12:10 PM EDT
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Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
For those above with Aetna, is this the end of your first plan year with Aetna? Insurance companies do "buy" business with lower rates (and relying on previous carrier's run out claims) the first year and jack them up the second.
And small companies do get hit hard. All it takes is a couple of big claims and rates will skyrocket. |
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Increase in Insurance Premiums
posted at 10/14/2010 4:12 AM EDT
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Posts: 237
First: 7/10/2007 Last: 8/31/2011 |
New plan year just started 10/1 for us. BCBS wanted 45% increase, said most of that that was due to one case. When that case was no longer a consideration they only adjusted their bid 3%. Switched to similar coverage from Aetna for about a 24% increase over last year. We're in the âover 50 employees but under 100â bracket.
Have seen a summary on another board that showed Health Care Reform was estimated to bump costs anywhere from 7% to 12% this year depending on the survey. The key word there is âestimatedâ since insurers are guessing at what the elimination of caps & pre-existing conditions will do to their costs. Next year will tell the tale. |
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Increase in Insurance Premiums
posted at 10/14/2010 5:58 AM EDT
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Posts: 62
First: 9/13/2005 Last: 11/19/2010 |
We're with BCBS and were quoted a 9-10% renewal rate for a group over 50 but less than 100. In our state, they are estimating that 1-2% of the increase is due to health care reform. We had switched to high deductible plans a few years ago after receiving high double-digit increases for several years in traditional plans. Its sad that I am happy with this year's increase!! |
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Increase in Insurance Premiums
posted at 10/18/2010 4:47 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
Wow...20%+ increases. Are you taking any steps to mitigate risk within your workforce? If you have less than 50 employees, you are probably stuck with "pooled" increases, so you may not have too many options when it comes to negotiating renewals besides the dreaded downgrade of benefits. For employers with greater than 50 employees, you shouldn't be seeing 25% increases. |
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Increase in Insurance Premiums
posted at 11/2/2010 9:57 AM EDT
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Posts: 1
First: 11/2/2010 Last: 11/2/2010 |
Thank you for posting this question. I guess we're not the only ones struggling with this question. We are self insured with over 100 employees, but less than 500. We are anticipating an increase in weekly contributions by 10%, but hate to increase if the need truly isn't there. Interested to hear what other self funded employers are doing..... |
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Increase in Insurance Premiums
posted at 11/3/2010 6:33 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Expected low teens...came back at 34%...
Not sure what we will do. We can't change carriers because of a medical situtaion just diagnosed that would have to be disclosed....and would not get us favorable rates. This is going to hurt! |
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Increase in Insurance Premiums
posted at 11/5/2010 5:11 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
Julana, back to your question, since you're self-insured, your company's claims experience make up 100% of the rates (besides admin and stop loss of course). The only way you are going to reduce medical claims is to make your employees healthier. Create a health and productivity program that rewards employees that choose to live healthier lifestyles. If you prefer the stick approach, penalize employees that choose not to do so. Until your employees are engaged in their own health, companies have little chance to control spiraling health insurance costs. |
Forums » Topic Forums » Benefits & Compensation » Increase in Insurance Premiums
