Running Out of Solutions

[ABC]

I can honestly admit that right now I am running out of health insurance solutions for small group under 50 lives.

I am seeing rate increases in the 30% range on avg from multiple companies. There is absolutely no competition with the carriers right now.

Cost shifting and disease management is my only solution and it is running thin. You pitch that to a small group that is looking at paying $30,000 more a year and its tough to swallow. The good thing is if you pitch that to a group where their current broker is clueless you can walk out with an AOR.

I really do not know how this can continue.


If something does not change real soon in our health care system there will be no small group biz left.

The Gov. has to let open the interstate health plans. Forget the DOI of each state and lets start reducing cost ASAP.

 

[Full Throttle]

Using HRAs to control long term costs has been the main solution I've been running with and having success. That being said, I haven't delivered any 30%+ rate increases in some time. The trend increase has been around 7% this year for my groups.

 

[somarco]

Interstate sales is not the answer unless McCaran-Ferguson is overturned or repealed and insurance becomes the purview of the federal government.

Nothing proposed at the federal level will have any impact on the cost of health care, which means there is no effect on premiums. In fact, almost everything proposed or considered by congress will drive up premiums.

If DC backs off and let's the economy work out the kinks on their own we will be fine. If not, expect a continued downward spiral.

Based on what Barry has been telegraphing the last few weeks it is clear he just doesn't get it and is determined to do things his way. It is full steam ahead toward the iceberg just off the bow.

 

[ABC]

Using HRAs to control long term costs has been the main solution I've been running with and having success. That being said, I haven't delivered any 30%+ rate increases in some time. The trend increase has been around 7% this year for my groups.

What carriers are giving you a single digit rate increase?
Is this based off of pooled rating for the entire state?





For 4-1-10 I have 5 groups with 28%+ rate increase.
With 2 different carriers. These groups avg 25 lives a piece. I really do not want to lose one of these groups. Because when the economy turns they will be at or over 50 lives.

Also I another 8 groups around 10 lives each that are avg 24% rate increase. Those are all with one carrier.

I would give anything for single digit rate increase in this market place.

 

[somarco]

Are any of these American Community?

 

[ABC]

Are any of these American Community?

LOL
I pulled my last group with AC as of 2-1-10

I decided not even to quote them on group anymore.

 

[Full Throttle]

What carriers are giving you a single digit rate increase?
Is this based off of pooled rating for the entire state?

We have four group carriers in my state, none operate outside the state borders. The trend increase is based on the pooled portion, claim related increases have pushed some of my groups into the double digits, but nothing like you have been experiencing.

 

[Benefits Man]

edit......

 

[stuy119]

Using HRAs to control long term costs has been the main solution I've been running with and having success. That being said, I haven't delivered any 30%+ rate increases in some time. The trend increase has been around 7% this year for my groups.

You sure about that, Clark?

Trend is sitting at around 1.5% monthly increase, or 18% annually. When you also factor in risk changes and census changes, you're looking double digits - minimum.

This is my 4th year managing renewals, and the first year I've had to deal with double-digit increases. In some cases, this is the first year that I've had increases with my groups during that time period.

Carriers are "socking it to 'em" whether or not they are profitable clients or not.

 

[somarco]

Renewals are complex with way too many factors to make a general assumption. Factors that influence renewals include:

Size of the group
Percent of pooling for that tier
Carriers overall LR
Carriers actuarial studies
Geographical trends including unemployment
Renewal increases for MCO contracts
Past and ongoing shock claims
Changes in state or federal mandates

And no, the carriers are not "socking it to them" whether profitable or not.