National health insurance rate increases average 12% to 15%

|tab|

|ret||ret||tab|

Each year employers must work rising health insurance costs into their budgets, and this year is no different. National reports show the average rate increase for health insurance is 12 percent to 15 percent. |ret||ret||tab|

Darren Coffman, president of Benefits Unlimited Inc. said he has seen plan renewals come in as low as 4 percent and as high as 43 percent, depending on the carrier and/or frequency of claims. |ret||ret||tab|

"The thing I tell employers is that it is going up," he said.|ret||ret||tab|

Stan Robinson, account executive with Ollis and Company Insurors, said that in addition to the average 12 percent to 15 percent increase in health insurance rates, the average cost increase for drug benefits is even higher at 15 percent to 25 percent.|ret||ret||tab|

To offset these rising costs, employers may seek a more affordable plan, cut some benefits, opt for higher deductibles or copays, and add deductibles to drug cards, or they can require a higher premium contribution from the employee, Coffman said.|ret||ret||tab|

While changing carriers is an option, it may not have the desired effect if the company has a high incidence of claims, Coffman said. The new carrier may offer a lower rate to begin with, but once the underwriter has reviewed claims history, the company may rate the policy to meet the additional risk and wipe out any savings.|ret||ret||tab|

"There is no quick answer," Robinson said, "but employers can make employees smarter consumers of their health care package, which could reduce costs on the long term and might have a positive impact in the future." |ret||ret||tab|

His agency takes a pro-active approach to educating employers and employees on wellness and preventive medicine. Costs related to major illness are dramatically less with early diagnosis and treatment. If a procedure is less expensive and the employee gets back to work quicker, the long-term benefit is obvious, Robinson said, but that doesn't decrease costs in the short term.|ret||ret||tab|

Most insurance carriers are aware of the future savings from the prevention approach and provide wellness and prevention benefits to encourage people to take better care of themselves, Robinson said.|ret||ret||tab|

Also, patients can seek lower-cost options with their doctors.|ret||ret||tab|

For example, the insured can work with the doctor to see if a generic or middle tier drug is available. Generic drugs can be drastically lower in cost, Robinson said.|ret||ret||tab|

Coffman said high utilization of benefits is a major factor in increased cost of coverage, and higher copays for office visits are a reflection of that.|ret||ret||tab|

"The days are gone of the $5 co-pay office visit, you just ask for utilization when you do that," Coffman said. "Benefits aren't supposed to pick up every nickel and dime."|ret||ret||tab|

[[In-content Ad]]