• 777 reported incidents in 2014 and 1,249 in 2015.
• Breaches involving business associates tripled from 6% in 2014 to 18% in 2015.
• 32% of all breaches in 2015 were caused by hacking or malware, compared to 18% of breaches in 2014.
• Ransomware attacks are projected to increase 670% from 2014 to 2016.

With increasing longevity, low policy lapse rates, high claims and low interest rates, long-term care insurance has become a forgotten commodity. As premiums increase and fewer companies offer traditional long-term care insurance, the insurance industry is responding with more planning choices than ever before. And that's a good thing, considering the top end of the 75 million baby boomers in America turn 70 this year!

COPIC Financial Service Group believes that everyone needs long-term care planning because the most effective way to manage this risk is to transfer at least some of it to an insurance company. Needing extended care can cause emotional, physical and financial stress to one's family and lifetime savings. We believe that preparing for this time can help keep those golden years happy for everyone.

Learn more about the variety of planning options available, and contact Cary Lamb at (720) 858-6282 or Andrea Levine at (720) 858-6287 for more information or questions.

Premiums for small group insurance plans are increasing an average 8%, according to results of the Lockton 2016 Colorado Employer Benefits Survey (published 11/11/15). It should be noted that the percentage of employer increases have ranged from a high of 18% in 2004, to a low of 7.4% in 2013. 2016 premiums increases are the same as 2015----8%.   

However, the survey showed that after employers made plan changes, the average final rate of increase went from 8% to 4.4%. Reported changes included plan changes like increasing plan deductibles, increasing the out-of-pocket maximums, and increasing employee contributions and/or changing carriers to achieve the reported decreases. Other cost shifting strategies include increasing the amount employees pay for prescription drug coverage, and reducing the benefits in general. However, 75% of employers surveyed still expect employees to contribute less than 30% of the total premium for single coverage, which is about a 1% decrease from 2015.

The number of employers currently offering a high deductible health plan (HDHP) increased from only 3% in 2003 to 51% in 2015, with an additional 39% reporting that they are considering the addition of an HDHP in 2016 (this is a huge increase from just over 17% in 2015). About 65% of respondents reported having a deductible of $1000 or greater, which is also an increase of about 8% over 2015; compared to 2015 national statistics that show 46% of workers are enrolled in plans with a deductible of $1000 or more (up 5% from 2014). Another indicator of how rising medical costs are affecting Colorado employers and employees is the increase in HMO plans being offered by employers, 37% in 2016, a jump of 8% from 2015.

Not surprising, the second biggest concern employers stated, behind insurance rate increases at 82%, was compliance with federal health care reform as well as federal and state legislation at 78%, up from 62% in 2014. With 2015 being the year a lot of the reporting began, this is no great surprise, however 63% of employers reported that they were prepared for the 2015 reporting requirements. Employers did rank these reporting requirements as their greatest single health care reform concern.

Contact Andrea Levine at (720) 858-6287 with questions you may have.

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