Health-Insurance Rates Set To Rise In 2010

Insurancenewsnet.com related that major health-insurance carriers serving Central New York are currently working to determine how much of a rate increase their customers will face in 2010.

Spokespersons for Rochester-based Excellus BlueCross BlueShield, Schenectady-based MVP Health Care, and UnitedHealthcare, which has its upstate headquarters in DeWitt, say it's "too early" to provide definitive rate information for their 2010 health plans. Carriers typically file their rates with the New York Insurance Department on Nov. 30.

However, recent survey reports and interviews with employee-benefit consultants shed some light on what businesses can expect to see in rate increases. Figures in the 2009 Small Business Health-Care Reform Survey from the National Small Business, Association indicate 92 percent of respondents are planning for an increase in their premiums in 2010.

The average expected increase is 13 percent, and about 20 percent of small businesses anticipate premium increases of more than 20 percent next year, the survey found.

Consultants and brokers in upstate New York say businesses should expect to see increases of at least 6 percent, ranging into double figures, depending on plan design.Concrete numbers on health-plan rates won't be available until early November, says Christian (Chris) Marshall, executive vice president of brokerage services with Falcone Associates, Inc. of Syracuse.

New state taxes and fees imposed on health-insurance plans earlier this year will likely be reflected in 2010 premiums, says Ross Kraft, president of the Meridian Group of New York, Inc. in Utica and current president of New York State Association of Health Underwriters. Meridian helps clients in New York and neighboring states design employee-benefit programs for-their employees.

Rates for health-maintenance organization (HMO) plans in New York could rise between 15 percent and 20 percent because it's "a dwindling pool," says Kraft, referring to the decline in the number of people who are enrolling in HMO plans.

Another upstate employee-benefit consultant, Thomas Flynn, a Rochester-based principal with the consulting firm Mercer, agrees that HMO plans could see a double-digit rate increase. Flynn also believes health insurers are trying to help employers keep costs down by promoting their consumer-directed health-care plans.

CDHPs are high-deductible plans with an employee-controlled spending account - a health-savings account (HSA) or health-reimbursement arrangement (HRA).

MVP expects CDHPs will attract a larger share of the employer-sponsored health care market because of rising premiums, Gary Hughes, MVP's director of public and community relations, said in an e-mail message. Read more here.

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