Is the health insurance landscape still rocky or are rates coming back down to Earth?
We have seen rates stabilize somewhat but most clients are still seeing increases. If you look back at the year 2000, Blue Cross Blue Shield of Michigan was averaging health increases of 25 percent. In 2005, that average had moderated to 10 percent. We’ve seen Small Group Reform enacted here in Michigan in 2004 requires new rating methodology which has been good for some groups but bad for others. In addition to the rating issues, we are seeing some interesting moves by insurance carriers who commit to Michigan and others who may not stay around (at least not as we know them now). What are some of the health care industry trends? The introduction of consumer-driven health plans such as health savings accounts (or HSA’s) has been a hot topic for discussion with most of our clients. These programs introduce a high-deductible health plan with a tax-favored savings account from which to draw needed health care funds. Introduced to stem the tide of medical costs, these programs are not the
