NU Online News Service, May 26, 3:12 p.m. EDT
Despite continued increases in health insurance costs, few employers are considering getting rid of the programs, viewing them as an important employee benefit, a survey from the Council of Insurance Agents & Brokers found.
The Washington, D.C.-based association released its semi-annual survey of its members, finding that the overwhelming majority of benefits consultants say group medical plans continue to show no sign of decrease.
CIAB's survey of 88 members found that 87 percent of respondents say their small accounts saw increases ranging from 1 percent to more than 20 percent. For medium-size accounts, comprising 51 to 500 employees, 89 percent of brokers said those accounts experienced increases. And for large accounts, 67 percent said those accounts experienced increases.
Of those accounts that experienced increases, the majority of increases for small and medium-size accounts were in the range of 11-to-15 percent, while 31 percent of brokers said their large account increases ranged from 6-to-10 percent.
"As the prolonged economic downturn continues to hit employers' bottom lines and rates continue to rise in excess of inflation, many corporate clients are being forced to pass on more of the costs of group medical coverage to their employees," Ken A. Crerar, president of the CIAB, said in a statement. "However, the survey also shows that most employers aren't looking to do away with this important employee benefit despite these issues."
He added that reluctance by employers to eliminate these plans, even in these tight economic times, underscores the value the plans have in attracting and retaining employees. Eighty-five percent of the responding brokers said between 1 percent and 10 percent of their clients are considering dropping health coverage.
"Congress is beginning to seriously consider the elements of health care reform and must recognize that employer-sponsored health care does work for millions of people across the U.S. Wiping clean the slate of health care options for employer-sponsored health care would cause more problems than it would solve," said Mr. Crerar.
Employers are shifting more of the premium increases for health care onto their employees, with more than 50 percent of respondents saying they have chosen this option.
High deductible health plans/health savings accounts are of great interest to employers, with 57 percent of consultants saying that clients see these plans as options and not a replacement for existing plans.
Group life insurance renewal rates remained stable or dipped slightly for all accounts, those surveyed said. The majority of brokers reported no increase in the plans.
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