Forums
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
0
Cat:Topic ForumsForum:ForumId52
Cat:Topic ForumsForum:ForumId52Discussion:DiscussionId36758
Forums » Topic Forums » Benefits & Compensation » Increase in Insurance Premiums
|
Increase in Insurance Premiums
posted at 10/7/2010 7:33 AM EDT
|
Posts: 198
First: 5/6/2006 Last: 8/29/2011 |
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 being, they assume, the new Health Care laws. We are in the process of getting our Open Enrollment prepared (our plan year is the same as the calendar year), and I am curious to know as to how much your companies are raising the premium, if you have this information this early. Also if your company is self or fully insured. Thanks! |
|
|
Increase in Insurance Premiums
posted at 10/7/2010 11:16 AM EDT
|
|
Posts: 464
First: 6/30/2004 Last: 11/22/2010 |
We pay for a base HMO plan that experienced a 9% increase over the prior year. There are 3 buy up options available at the employee's expense.
I was pleased with this increase (how weird does that sound), as I had no idea what to expect since we have a 10/1 - 9/30 plan year and when I was setting the budget, none of our brokers wanted to opine on what would happen with health care. |
|
|
Increase in Insurance Premiums
posted at 10/7/2010 11:26 AM EDT
|
|
Posts: 67
First: 9/24/2001 Last: 10/7/2010 |
Reform is expected to contribute to premium increases, but is not the only culprit. According to a Mercer survey, the predicted increase to employers of up to 500 employees is 11.7%. 3% of THAT is due to reform.
We are working with a 12% increase and are making some design changes (HDHP/HSA) to address that. |
|
|
Increase in Insurance Premiums
posted at 10/8/2010 9:10 AM EDT
|
|
Posts: 198
First: 5/6/2006 Last: 8/29/2011 |
Thank you all for your info. Right now we are staying grandfathered and have been able to keep the medical increase down to 7%, but with the additional costs that will be added due to the reform, only time will tell if more will be needed next year. Actually the increases you mention are smaller than I expected. |
|
|
Increase in Insurance Premiums
posted at 10/8/2010 12:42 PM EDT
|
|
Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
From an actuarial standpoint, the initial changes (covering dependents to age 26 and eliminating cost sharing for preventive services) should only have about a 1% - 2% impact to the rates, if that. Of course, changes impact companies differently. If you have an inordinate number of employees getting physicals or that have children between the ages of 20 and 25, it could have a slightly higher impact. |
|
|
Increase in Insurance Premiums
posted at 10/13/2010 9:12 AM EDT
|
|
Posts: 1
First: 10/13/2010 Last: 10/13/2010 |
From our consulting practice, our groups over 500 employees who are self-funded are generally taking increases in the 8-14% range. We are calculating in 2% load for the healthcare reform. Our local blues network has estimated a 2.6% increase from healthcare reform impact, across their fully-insured book. Cigna provided us information they are estimating between 1.7% - 4.5% impact, depending on where current benefits and eligibility are set, along with considering if a group will remain grand-fathered, or not. More than 90% of our business will not remain grand-fathered because of their need to make benefit modifications to keep costs down. |
Forums » Topic Forums » Benefits & Compensation » Increase in Insurance Premiums
