Increased Costs For Medical Coverage…What’s New?

Recent reports from experts within the Healthcare Industry are that group medical rate increases will continue to rise throughout 2010 and 2011 at a steady pace. In fact, we’ve heard from many experts that that the generally projected increase of 9% (for renewal rate increases through 2011) is rather conservative; 10-15% minimal increases is far more likely and if your group has had any adverse experience or gotten older on average, the increases can be much higher than that!
It may sound crazy to many business owners that are simply trying to keep their company afloat during the current recession, but it is also generally agreed amongst Healthcare experts that these significant increases are projected to continue for years to come.   
Most insurers are blaming the increases they are passing down to their insured groups on the carriers complying with the new laws. The result for most businesses and their employees across the nation is higher premiums, reduced benefits, or both.
Interestingly, our research and networking into what we should expect from the Federal Government’s Healthcare Reform initiatives moving forward typically results in blank stares, a few shoulder shrugs, and a “who knows” response.  Based on these responses coming from noted authorities within the Healthcare Industry (both agents and carrier representatives) one can’t help but be concerned (if not frightened).  It will be interesting to see what the upcoming elections results are and how any changes in State or Federal Government representation might impact the current course for Healthcare Reform.  You can count on us to keep posting the information and insights that we receive here on the PEO OUTPOST.  Stay tuned!
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