Just a wee bit of venting....

Still Need Coffee · November 2010

...we just received our initial medical insurance renewal rates...

30 PERCENT!!!!!!! It was all I could do to not jump out my window.

This was me 10 minutes ago....::angryface::

Sharon McKnight SPHR · November 2010

If that's a 30% increase in rates over last year, then that has to be the biggest single rate increase in quite some time. Has anyone else received such a huge increase in rates this year?

Sharon

Still Need Coffee · November 2010

I was shocked. I've never had a 30% increase, and this was a "good" year for claims, as far as I knew!

I'd love to hear what everyone else has been experiencing...

Dutch2 · November 2010

We have not yet received our quotes for 2011. I expect them anyday now.

ACU Frank · November 2010

We got hit with 44% last year.

NaeNae55 · November 2010

Do you have one or more employees with serious illnesses? Are there new mandates in your state? If not, it is probably time to shop around.

We are part of the self-funded group of our owner company. They are agressive in finding ways to cover employees while keeping costs down, and a small part of that is due to us, that is, my boss and her expertise in this area (one of the reasons they bought us). We have had very little change from 2010 rates to 2011. I looked at our COBRA rates from 2005 and there is about 15% increase from 2005 to 2010.

If you won't improve your offer by shopping around, then look at changing your plan design. Good luck!

bethk · November 2010

Our rates are going up 30%. We're self insured and that is the best our broker can do. I don't know what is going to happen yet. I heard from our CFO that they're looking at different options, one of which is the deductible might go up to $5000, or they may cancel insurance all together. ::angryface::

ACU Frank · November 2010

If you're self-insured, what rates are going up 30%?

bethk · November 2010

We're self insured but Pacific Source administers our plan. From what the CFO says the benefit of being self insured is no longer there.

NaeNae55 · November 2010

I disagree. You get some protection from many insurance laws (at least, in our state you do) and, more importantly, you have more control over meeting the needs of your employees.

A hospital owns us, so they are very interested in healthy employees. We have a large employee deductible to keep our costs down, but it doesn't kick in until the employee has spent $400 on annual check ups. We also cover other important tests that many insurers count towards your deductible (doesn't count towards the $400). We cover flu shots and a variety of other immunizations. Everything is geared towards being healthy. However, the deductible is $1,000/$2,000 (it was higher until recently). Employees can participate in a 3rd party health program (blood work, etc), and a high percentage of employees do.

One of the biggest factors that help us control costs is our stop loss deductible (both specific and aggregate). We choose how high we want it, not someone else.

These are just some of the more obvious ways we have control and can make a difference. We do have to shop around though. We changed our TPA in 2010, much to the shock of our prior carrier. There was a huge difference in fixed costs. Of course, you have to be careful that the company you go with is reputable, but it really helped us this year.

If you don't have someone who really understands all the ins and outs like we do, it is best to go with a broker. Shop around there too.

Good luck!

joannie · November 2010

We aren't due for renewal until July 1, but I contacted our broker last week to get some idea for budget purposes. Groups comparable to ours are coming in with 7-15%. Hope that holds.

Wildsporty · November 2010

Well folks I guess we are luckier than most. I thought my 10% was a large increase...now I feel better about it.

We do a high deductible insurance 1000.00 (2000.00) family through Blue Shield and than we have an HRA with a 500.00(1000.00 family) buy down option .This buy down option allows the employee to buy down Their deductible to 500.00 (1,000) family with their HRA money once they have met the 500 (1000.00) family amount.

Since not everyone meets their deductible and uses the funds it has allowed us to keep our insurance at a slower percentage of increase. This is the first year I have had double diget increase in insurance for the last 5 years.

My dental only increased 2.5 percent and my life and STD, LTD had no increases as did my flex plan administration.

Shirley

kdigangi · November 2010

I've heard horror stories like this but so far not experienced it. We have an 8.5% increase which we negotiated down from 13.5% effective next month. We have a real cadillac plan with $5 co-pay and no deductible. Of course, in MA I believe we have some of the highest rates in the country to start with, and we already had most of the mandates contained in the new health reform law.

What our broker is recommending for companies that want to cut costs is to go with a high deductible plan and fund some of the employees' out-of-pocket costs through a health reimbursement account. He says it always works out in the employer's favor.

One thing we did lose is the ability to customize the plan. We used to be able to pretty much build the plan with whatever co-pays and deductibles we wanted. Now, if we wanted to change, we'd have to go with a standardized plan design that would have much higher out-of-pocket costs for employees. Weren't quite ready for a change that drastic, but I can see it coming since our costs are astronomical.

bethk · November 2010

Sheesh, our deductible this year is $1500 per person and $4500 for family. I wish ours was more like yours Nae. I'm not involved in the process but wish I could see more of the inner workings and know what drives their decsions. My part as far as insurance goes is making sure the numbers balance each month concerning the premiums for all the stores. There's a rumor going around that our deductible for 2011 could be $5000. I hope it's just a rumor and nothing else. If so I'll look at insurance outside of work.

Beth

Paul in Cannon Beach · November 2010

"What our broker is recommending for companies that want to cut costs is to go with a high deductible plan and fund some of the employees' out-of-pocket costs through a health reimbursement account. He says it always works out in the employer's favor."

That's the route we took years ago. We still have had to maneuver around to keep costs down. Last year we switched to a plan that had more copays to reduce our reimbursements. That's been very effective and we should realize a substantial savings.

We're waiting for our 2011 increase. We initially were given a 45% increase but we had been miscategorized. We are hoping for 10-15%.

jangle · November 2010

We have just received our 2011 rates and our increase is only 3%. I contribute this to our wellness education program over the past four years that have kept our rates low by reinforcing healthy eating, exercise and our wellness contests / programs.

We do have a higher deductible plan of $1250.00 and $3750 max out of pocket expense.

Paul in Cannon Beach · November 2010

We just got ours back. 28% increase. This will not be a fun week.

plynnl · November 2010

We get ours next week. Not looking forward to hearing what the probable increase is.

Sharon McKnight SPHR · November 2010

[quote=jangle;721076]We have just received our 2011 rates and our increase is only 3%. I contribute this to our wellness education program over the past four years that have kept our rates low by reinforcing healthy eating, exercise and our wellness contests / programs.

We do have a higher deductible plan of $1250.00 and $3750 max out of pocket expense.[/quote]

Jangle,

Your first post! Glad to have you with us here on the Employers Forum.

Sharon

:welcome:

Just a wee bit of venting....

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