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Member, Beacon International Group, Ltd.
Group medical benefit rates are still rising, with many insurers blaming the increases on the year-old health care reform law, says a survey conducted by The Council of Insurance Agents & Brokers.
According to the survey of CIAB members, small groups saw the biggest increases at renewals, with 62% percent reporting hikes from 11% to 20%. Among midsized accounts, three-quarters saw increases of between 6% and 15%, while large accounts saw the lowest premium increases: 55% reported hikes of between 1% and 10%.
CIAB member companies “continued to see premium increases for clients, though the rate of increase has slowed for some groups since our November survey,” Ken A. Crerar, president of the CIAB, said in a statement. “Demand for brokers’ services continued to be high as employers continued to implement the changes from last year’s health care reform legislation. Nearly all accounts went through a renewal since the enactment of PPACA a year ago, but there is still significant confusion among employers about implementing the law.”
Brokers surveyed cited concerns about “lack of carrier flexibility for certain accounts,” according to the CIAB. For example, one said that “price changes seemed to account for additional cost due to PPACA. For small accounts, less flexibility and less negotiating.” Another said, “Carriers in the small group arena have fewer plan options available.”
All brokers surveyed remain concerned about the effect of the health care reform law on their group benefits revenue, the CIAB said.
The full survey is available at www.ciab.com/WorkArea/DownloadAsset.aspx?id=2310&libID=2332.