A friend and fellow agent is looking at early renewal possibilities for his small group clients. Currently he has 49 of them and he put together a spread sheet to get an idea of what will happen in 2014.
Projected rate adjustments range from -20% (a rate reduction) to + 50%
Currently the small group plans are GI but carriers are allowed to make an adjustment to base rates following an underwriting review.
New to 2014 is the compressed age bands, unisex, new plan designs, no more pre-ex limits or waiting period, abolishing industry adjustments, etc.
The interesting thing about this analysis is this.
Older, sicker groups either have very small increases and many have a rate decrease.
Younger, healthier groups will have the larger rate increases.
Sounds like a winning formula.
Projected rate adjustments range from -20% (a rate reduction) to + 50%
Currently the small group plans are GI but carriers are allowed to make an adjustment to base rates following an underwriting review.
New to 2014 is the compressed age bands, unisex, new plan designs, no more pre-ex limits or waiting period, abolishing industry adjustments, etc.
The interesting thing about this analysis is this.
Older, sicker groups either have very small increases and many have a rate decrease.
Younger, healthier groups will have the larger rate increases.
Sounds like a winning formula.