A survey of insurance brokers has found rates for most of their clients' group medical benefit plans increased by more than 10 percent, but another study indicates there may be some relief in sight for next year.
The Washington, D.C.-based Council of Insurance Agents & Brokers released its twice yearly “Employee Benefits Market Survey” yesterday. The survey of 105 members found that small and medium-size accounts witnessed the sharpest rate increases, while large accounts experienced slightly less increases.
For small accounts, of 50 or fewer employees, the survey said 50 percent of their clients saw rates increase between 11- and 15 percent since May of 2006. For medium-size accounts, with 51-to-500 employees, 42 percent experienced rate increases in this range.
For large accounts of 501 or more employees, 19 percent saw increases in the 11-to-15 percent range. Forty-one percent of large accounts did better, with increases of 6-to-10 percent.
Thirty-four percent of medium-size accounts saw increases between 6- and 10 percent, while only 16 percent of small accounts were in that range.
In order to control costs, CIAB said the survey found the trend by employers is to increase the share of employee-shared premium costs; assess prescription drug co-pays; and increase deductibles and co-pays.
Few employers are discontinuing group medical benefits, CIAB said.
More employers are looking into health savings accounts, and 70 percent of the responding brokers reported that they sold a plan for either 2006 or 2007 plan years.
In another survey released yesterday, Aon Consulting, a subsidiary of insurance broker Aon Corp., based in Chicago, said health care cost increases overall are projected to be about 11 percent over the next 12 months, the lowest in five years.
Aon said it surveyed 90 leading health care insurers, representing more than 100 million insured individuals.
The results found health maintenance organizations are projected to increase 11.4 percent, compared with 12.9 percent last year. Point-of-service plans should increase 11.2 percent, and preferred provider organization plans increase 11.6 percent. Both plans increased 13 percent last year.
Five years ago, the medical trend rate was estimated to rise 16 percent, Aon said.
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