Group health insurance rates for minute and midsize employers are surging for 2011 renewals, according to a survey by the Council of Insurance Agents & Brokers.
Rather than gripping the costs, most employers are altering their plan designs and passing on several of the enlarged costs to their employees, according to the CIAB's “June Employee Benefits Market Survey†unconfined last week at the group's Employee Benefit Leadership Forum in Colorado Springs, Colo.
Of the member reimbursement brokers responding to the survey, 86% said health insurance prices increased for small accounts, defined as those with 50 or fewer employees. More than half of the increases are in the series of 11% to 20%.
Brokers said 58% of medium-size accounts, defined as those with 51 to 500 employees, are considering increases in the range of 6% to 15%.
Large accounts, defined as those with 501 or more employees, also are considering higher rates for group coverage being rehabilitated for 2011. Fifty-one percent are seeing increases in the range of 6% to 15%.
In response to the premium hikes, employers of all sizes are altering their plan designs. In many cases, they are changing some of the costs to employees through higher deductibles, co-payments and premium donations, according to the review.
Some brokers also say they are seeing better approval of consumer-driven, high-deductible health care diplomacy.
