We have not received our increase information yet, but I just came from a meeting of our local employer's council (an informal HR group) and they are expecting between 5% and 14% this year.
We're a public utility district in CA. Our insurance is going up 25%, it went up 20% last year. We still pay 100% of the premium for the ee and family, but we're getting boxed into a corner on costs. Two years ago we dropped from a 90/10 to an 80/20 plan to try to stem the costs. We even contribute $800 - $1300 into the ee's FSA to help defer the additional out-of-pocket costs. But I really think the goose is running out of golden eggs.
I think I asked the question before on another thread, and with the answers - still believe that the heads of HMOs and hospitals don't have a clue as to why rates go up..it is just a "pass along the costs, whatever they are !" mentality, there is NO incentive for HMOs to contain costs as long as they can pass along with total impunity.
I disagree. I think there is a sufficient incentive for carriers to contain costs. An article in the LA Times cited a national survey that found 43% of businesses this year will change carriers for better rates! I think that's incentive enough.
The true cause of rising costs are numerous, however, some of the bigger buckets include forced pricing from hospitals/providers, rising costs of malpractice insurance for providers and hospitals not to mention the fact that as medicine becomes more technologically advanced, the costs of that technology and the R&D costs associated with making it a reality have to be recouped. I could go on and on forever......
I'm afraid something drastic has to happen in this country before the entire private healthcare industry implodes. We can start a whole new thread on this one
I agree with your thoughts. Something has to give soon. Something better has to come along.
However, I was able to negotiate with one of the top carriers to get a rate hold for the 2004 plan year. I was very suprised but happy to see it, and with no benefit structure change.
I think most of the carriers understand this will be a very trying renewal year and are willing to take a sacrifice to keep their groups. I would suggest playing hard to get (keep) and see what happens. It worked for me.
I agree. Get other quotes and play one carrier against another. We got an initial quote from BC/BS last year and had the employees fill out applications. Our carrier got wind of this and came back from a 7.5% increase to no increase!!! (This was after a 28% increase and 48% increase) I am already getting quotes from competing agents and insurance carriers. I go with who gives me the best service and price. I will probably be making plan design changes this year to encourage employee involvement and education.
Out here in MA we couldn't even get other insurance companies to look at us because the percentage of ee's not on the plan who were eligible. After some investigation I found out most of them were on Free Care that we have in this state. I got em to sign waivers so hopefully we can get better rates or less increase next year.
>Out here in MA we couldn't even get other insurance companies to look >at us because the percentage of ee's not on the plan who were >eligible. After some investigation I found out most of them were on >Free Care that we have in this state. I got em to sign waivers so >hopefully we can get better rates or less increase next year.
This is true. When you submit your census, those employees who have other coverage are certainly excludable from any minimum participation levels required. The flip side to this is two-fold. One, you're losing the strength of numbers in your group. Two, your tax dollars would probably be better spent on something other than providing free health care to someone who has access to an employer sponsored plan.
Comments
it went up 20% last year. We still pay 100% of the premium for the ee and family, but we're getting boxed into a corner on costs. Two years ago we dropped from a 90/10 to an 80/20 plan to try to stem the costs. We even contribute $800 - $1300 into the ee's FSA to help defer the additional out-of-pocket costs. But I really think the goose is running out of golden eggs.
rates go up..it is just a "pass along the costs, whatever they are !" mentality,
there is NO incentive for HMOs to contain costs as long as they can pass along with total impunity.
Chari
I disagree. I think there is a sufficient incentive for carriers to contain costs. An article in the LA Times cited a national survey that found 43% of businesses this year will change carriers for better rates! I think that's incentive enough.
The true cause of rising costs are numerous, however, some of the bigger buckets include forced pricing from hospitals/providers, rising costs of malpractice insurance for providers and hospitals not to mention the fact that as medicine becomes more technologically advanced, the costs of that technology and the R&D costs associated with making it a reality have to be recouped. I could go on and on forever......
I'm afraid something drastic has to happen in this country before the entire private healthcare industry implodes. We can start a whole new thread on this one
Regards,
Gene
I agree with your thoughts. Something has to give soon. Something better has to come along.
However, I was able to negotiate with one of the top carriers to get a rate hold for the 2004 plan year. I was very suprised but happy to see it, and with no benefit structure change.
I think most of the carriers understand this will be a very trying renewal year and are willing to take a sacrifice to keep their groups. I would suggest playing hard to get (keep) and see what happens. It worked for me.
Good Luck,
Dee
We will likely change to a plan with a larger deductible and increase our medical reimbursement plan.
We are 90 minutes from the closest metropolitan area so we don't have alot of options available to us.
Paul in CB
>at us because the percentage of ee's not on the plan who were
>eligible. After some investigation I found out most of them were on
>Free Care that we have in this state. I got em to sign waivers so
>hopefully we can get better rates or less increase next year.
This is true. When you submit your census, those employees who have other coverage are certainly excludable from any minimum participation levels required. The flip side to this is two-fold. One, you're losing the strength of numbers in your group. Two, your tax dollars would probably be better spent on something other than providing free health care to someone who has access to an employer sponsored plan.
Gene