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Member, Beacon International Group, Ltd.
Group health insurance rates for small and midsize employers are surging for 2011 renewals, according to a survey by the Council of Insurance Agents & Brokers.
Rather than absorbing the costs, most employers are changing their plan designs and passing on some of the increased costs to their employees, according to the CIAB's “June Employee Benefits Market Survey” released last week at the group's Employee Benefit Leadership Forum in Colorado Springs, Colo.
Of the member benefits brokers responding to the survey, 86% said health insurance prices increased for small accounts, defined as those with 50 or fewer employees. More than half of the increases are in the range of 11% to 20%.
Brokers said 58% of medium-size accounts, defined as those with 51 to 500 employees, are seeing increases in the range of 6% to 15%.
Large accounts, defined as those with 501 or more employees, also are seeing higher rates for group coverage being renewed for 2011. Fifty-one percent are seeing increases in the range of 6% to 15%.
In response to the premium hikes, employers of all sizes are changing their plan designs. In many cases, they are shifting some of the costs to employees through higher deductibles, copayments and premium contributions, according to the survey.
Some brokers also say they are seeing greater adoption of consumer-driven, high-deductible health care plans.
The survey is available online at http://www.ciab.com/LinkClick.aspx?fileticket=sOfsREMwP4Y%3d&tabid=75.