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

[Brian Anderson]

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

 

[mithrobt]

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???

 

[RayNY]

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???

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.

 

[scagnt83]

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%.

 

[somarco]

How often does CBO make these predictions and how accurate (or not) have they been in the past?

 

[RayNY]

How often does CBO make these predictions and how accurate (or not) have they been in the past?

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.

 

[mithrobt]

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...

If they decide we're getting 5%, we're just going to get 5%, regardless of what carriers need or request.

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...

 

[RayNY]

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.