NU Online News Service, June 4, 11:30 a.m. EDT
A survey of the nation's leading insurance brokers found that group medical renewal premiums are still hitting double-digit increases, but some say insurers are being flexible to retain market share.
The Council of Insurance Agents & Brokers released its June Employee Benefits Market Survey for small, medium and large employers and reported that the majority of clients were hit with increases.
"Several members commented that they are seeing large increases," Ken A. Crerar, president of the CIAB, said in a statement.
He added that in light of passage of the health care reform bill, "brokers have some uncertainty about business going forward, but most believe there will be new demand for their services."
For small accounts with 50 or fewer employees, 86 percent of the 108 brokers surveyed said their clients' rates increased by double digits on renewals since November 2009.
Fifty-eight percent said rates in the small account category rose 11-20 percent.
For medium-size accounts, with 51-500 employees, 93 percent of clients experienced increases. Of that number, 53 percent reported rate increases between 11- and 20 percent. Thirty-one percent said their increases were in the 1-10 percent range.
Of large accounts with 501 or more employees, the number experiencing increases stood at 74 percent. Only 27 percent of those clients witnessed increases in the 11-20 percent, while 43 percent had increases in the range of 1-10 percent.
When compared to the 2009 benefits survey, while the percentage of those seeing increases has not changed significantly, the rate of increases may be higher than last year, according to the report.
Only 7 percent of small accounts experienced an increase of more than 20 percent in the 2009 survey, compared to 18 percent this year. For medium-size accounts, the number was 4 percent with an increase of more than 20 percent, compared to 9 percent this year. For large accounts, only 1 percent had an increase of more than 20 percent last year, compared to 4 percent this year.
While the percentages were not dramatically different in other areas between the 2009 and 2010 surveys, one notable difference between the surveys was small accounts. Last year, 18 percent experienced increases between 1- and 10 percent, compared to this year's 10 percent.
The number of respondents was also significantly different. Where in 2009 only 88 responded to the survey, this year there were 108 responses.
In anecdotal comments supplied by the CIAB, one broker said that for all size accounts there are more plan designs to lower premium and there is a drive for high-deductible plans.
On group health plans, brokers said there was some decline. The majority, however, said there was no change on renewals, consistent with the 2009 survey.
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