CBO: Employers Can Expect 5% Annual Increase in Health Premiums

Feb 17, 2016

  1. Brian Anderson
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    Brian Anderson Executive Editor

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    CBO’s latest report is saying employers can expect health insurance premiums to rise about 5% per year over the next decade, and that by 2025, the average annual premium for employer-provided health insurance will be $10,000 for single coverage and $24,500 for family coverage.

    For 2016, CBO has average premium for employer-provided coverage at $6,400 for single and $15,500 family.

    More stats in the article linked below, and also ran across some stats for comparison from Kaiser Family Foundation:

    • $6,251: Average premium for employer-provided coverage in 2015. On average, employers paid 83% of the premium, or $5,179 a year. Employees paid the remaining 17%, or $1,071 a year.

    • $17,545: Average premium for employer-provided family coverage in 2015. Employers contributed, on average, 72% or $12,591. Employees paid the remaining 28% or $4,955 a year.

    • According to the 2015 KFF/HRET survey, smaller employers (which they classify as less than 200 employees) contribute significantly less (65%) to family coverage but paid 85% on average of single coverage.

    Insurance Forums | CBO says employers should expect 5% annual health premium increases for next decade
     
  2. mithrobt
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    mithrobt New Member

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    5% ? sure - if you go to a plan with a VERY narrow network that requires referrals and Prior Authorization for Brand name medication. Of course most requests will be denied...my clients are only experiencing an avg of 19% this year...thats after 20%+ for the past 2 years.in NYC.....
    isnt that what they predicted 3 years ago also ???did anybody actually see that???
     
    mithrobt, Feb 18, 2016
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  3. RayNY
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    RayNY Guru

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    In NY, DFS can dictate rates and increases with no oversight.

    You know, like how they took Oxford's reasonable 1.08% increase and turned it into a -9.41% decrease... https://myportal.dfs.ny.gov/web/prior-approval/summary-of-actions-premium-requests

    If they decide we're getting 5%, we're just going to get 5%, regardless of what carriers need or request.
     
    RayNY, Feb 18, 2016
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  4. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    5%+/- is in line THIS YEAR for small groups in my area, and not just for bare bone plans. I just had one renew with BCBSSC thats on a national network and is the lowest deductible HD plan offered; their increase was right under 5%.

    Of course over the past 5 years the annualized increase would be more than 5%.
     
    scagnt83, Feb 18, 2016
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  5. somarco
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    somarco GA Medicare Expert

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    How often does CBO make these predictions and how accurate (or not) have they been in the past?
     
    somarco, Feb 18, 2016
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  6. RayNY
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    RayNY Guru

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    CBO makes predictions all the time. Generally, they're wildly off. For instance, the cost of ACA provisions has nearly tripled over the past few years.
     
    RayNY, Feb 19, 2016
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  7. mithrobt
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    mithrobt New Member

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    Im guessing you are an employee there.....hows your stock options or discounted stock performing ????IS Oxford or United is a growth company ????
    United STOCK price up over 100% in 3 years not counting dividends...your are absolutely correct - NO OVERSIGHT!!! (and the stock market recovery had already ended) .very creative accounting - Oxford numbers are calculated differently than United??? REALLY??
    the formula is: political campaign contributions + lobbyists = no oversight!!! lets see what happens when Bernie becomes President! Did Hillary give any speeches at United(or Oxford) recently??? Im only 28 years old with an MBA from a top B school...and getting into the Health insurance Broker world WAS great (it paid for school, working 60 hrs/week).. Deceiding to stay in was a huge mistake - 8 years ago, I was making huge $$. now I cant pay my rent... If Bernie wins, I will have to start over again - otherwise my last round of financing for a PEO will be complete at the end of next January and an IPA(including urgent care centers) is scheduled to be financed by mid 2019....good luck to all brokers - hopefully insurance companies will start telling you the truth and pay you commission for your hard work...:idea:
     
    mithrobt, Feb 19, 2016
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  8. RayNY
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    RayNY Guru

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    Seems like you have a lot to get off your chest. Maybe you should take a moment to read and understand what you're replying to, because your rant makes no sense in context.
     
    RayNY, Feb 22, 2016
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