Council Calls For Action On Health Insurance

By Mark E. Ruquet

NU Online News Service, Dec. 12, 2:23 p.m. EST?-A broker's association said that, in light of its recent cost survey, health insurance programs in the United States are in need of reform before they become unaffordable for most participants.

Ken A. Crerar, president of the Washington, D.C.-based Council of Insurance Agents and Brokers, in a statement said a survey completed by its members shows there are growing problems stemming from the dramatic increase in the cost for health insurance--and the situation needs to be addressed soon.

"This survey shows that employer-sponsored health insurance is under stress as never before due to the seemingly unstoppable escalation in the cost of medical care," said Mr. Crerar. "It is critical that players on all levels come together and address this problem before one of the hallmarks of the American workplace is damaged beyond repair."

The survey, covering the past six months, asked brokers how much Group Medical insurance premiums have increased since May of this year.

Of the 80 respondents to the survey, the majority, 75 percent, said rates increased 10-to-30 percent.

Small accounts, with 50 or fewer employees saw the biggest jump. Seventy-eight percent said rates were up 10-to-30 percent, and 14 percent saw increases from 30-to-50 percent. Of the medium accounts [between 51 and 500 employees] and large accounts [more than 501 employees], 74 percent saw increases in the 10-to-30 percent range.

The survey found that clients are using a number of options to control the cost of insurance, ranging from higher deductibles to consumer driven or defined contribution plans.

The survey said some employers are either dropping group medical altogether or raising the cost for the insurance shared by employees to a point where they cannot afford it and drop coverage.

There are currently an estimated 41 million Americans without health insurance in the country, CIAB said.

Details of the survey can be found at www.ciab.com.

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