Health Care Cost Increase in Double Digits
According to an article on Insurancenewsnet.com, Health Care Costs in the US will rise 10 percent over the next 12 months. These projections were taken without calculating the effect that any type of Health Care Reform would have on rates. Surprisingly, these projected increases are down from last year’s rise in premiums. The article explained further that HMO and POS (Point of Sale) plans were expected to have the largest rise in premiums, with PPO and EPO estimated lower.
This is of course horrible news for small businesses already struggling to pay for employee benefits.
What advice can be offered when a national insurance broker like Aon is predicting 10 percent across the board increases in health insurance premiums?
The advice is NOT sit-back, auto-renew and wait for a Public Option. Because there is a very honest chance the Public Option never materializes. As a small business owner what you should be doing is actively working with your insurance broker to find available solutions (See High Deductible Plans). The days of 100 percent employer pay health plans is all but over. Provide your employees with multiple options for their health plan and look into voluntary benefit programs. Find ways to offer your employees benefits that don’t effect the business’s bottom line. A quality insurance broker will be willing to sit down and an insurance project plan with you.
Basically, like all things small business, complacency is the Devil. Become complacent and you’ll have larger issues than your Health plan.
Thank you,
Ryan H.
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