March 15th represents the annual renewal of the Advantage Benefits Group, Inc. health insurance plan. We thought we would review our numbers to demonstrate that we also go through a detailed process just like you. Currently, we have the HMO Blue Premier Value Plan and received a 16% increase. Below is a summary of the plan:
Plan Name: Single Rate: Family Rate:
HMO Blue Premier Value - Renewal $ 353.98 $ 928.49
Office Visits: $ 25
Emergency: $ 100
Day Surgery: $ 250
New Imaging Co-Pay: $ 75
Hospital: $1,000 deductible
RX: 15/30/50
Just like you, we hear the talk about Health Savings Accounts (HSA). The theory behind buying a high deductible HSA plan is that premiums go way down - and then you deposit the savings tax-deductible & tax-deferred into a HSA. In the event medical bills are incurred, monies are withdrawn from the HSA without any tax consequenses to pay the bills. Remaining balances can be rolled over.
Blue Cross quoted an HSA compliant plan for us with a $3,000 family deductible. Although there is a co-payment of $20 for routine office visits & PCS co-payment of 10/25/45, anything outside the scope of a preventive/routine office visit, as well as emergency room, hospitalization and day surgery, are subject to the $3,000 deductible. At the same time employees would be able to contribute up to $5,800 on a tax deductible and tax-deferred basis into an HSA.
The premise is that someone, who is paying for the first $3,000 of bills will lead to less utilization. It may also result in savings when the consumer comparing rates between doctors and hospitals. On paper this may make sense, however, review of the numbers prove otherwise.
The monthly premium for this HSA compliant plan only dropped to $854.78 per month! That equates to a monthly savings of only $73.71 or $884.52 annually. Our conclusion and final result was to keep things status quo. A savings of $885 per person is not enough to take on the added exposure of a $3,000 deductible.
Although there is a lot of hype about Health Savings Plans, the rating structure simply has not not made it an attractive option. As a result, the amount of people who participate in a Health Savings Account remains very low.
