| Issue: # 102 | August 30, 2013 |
 | | Standing up for a friend commerical |
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Dear :
Hope everyone is having a safe summer and enjoys this last long week-end of summer. We have been working on some new exciting plans for our clients. Stay tuned.
On the health insurance front, the main thing we keep seeing are high deductible plans with the employer having an HRA plan to pay a portion of the deductible for employees. Most common is $1,000, but many have moved to $2,000. There are not many $500 deductible plans remaining.
Blue Cross $3,000 deductible, to be compliant with the Commonwealth's MCC the employer has an HRA that pays at least $1,000 to limit employee exposure to $2,000, has also proved to be very popular. We will see more insurance companies coming up with plans with high deductibles like this.
If you feel you are paying more, however, for less, you were not wrong. A state report says Bay State premiums rose 9.7 percent between 2009 and 2011, while the value of that coverage shrank 5.1 percent.
We are always available - call or send an email to Bill or Vanessa today.
Sincerely,
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4th qtr, 2013 &
1st qtr, 2014
Rates approved by the Division of Insuance | |
For the 4th quarter the average increase was 2.1%, while the average increase for the 1st qtr in 2104 will be 1.8%. Many employers think this means that they can expect an increase of 2.1%, if they renew in the 4th qtr. This is not the case!!!
Remember, this is just the increase for this quarter. You need to look at the increases for the prior 3 quarters to get an idea of where you increase may be for the 4th quarter. This also does not take into account any census changes. If you renew in the 4th quarter, your carrier now has your rates. Start working on renewal, start now!! Don't wait and if we can help, let us know.
The most alarming thing in the article, however, was an analysis that the implementation of the Affordable HealthCare Act will add an average of 3.7 percent before the carrier passes along their increase!!!
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Massachusetts waiver from the Affordable Care Act
Still waiting to hear if the waiver has been accepted. Remember Massachusetts allows the use of nine rating factors, the Feds will only allow four. Massachusetts also allows insurers to file rates quarterly, while the new law calls for annual filings. Masachusetts wants to continue with the nine rating factors and quarterly filings and have asked for a waiver from the ACA to continue this.
No language in the ACA "expressly prohibits" HHS from allowing states like Massachusetts that have enacted reforms to retain the most successful elements of their reform efforts. HHS hasn't been stingy with waivers from other ACA provisions... | |
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Limit on cosumer costs
Another component of ACA delayed until 2015 |
The limit on out-of-pocket costs, including deductibles and co-payments, was not supposed to exceed $6,350 for an individual and $12,700 for a family. But under a little-noticed ruling, federal officials have granted a one-year grace period to some insurers, allowing them to set higher limits, or no limit at all on some costs, in 2014.
The grace period has been outlined on the Labor Department's Web site since February, but was obscured in a maze of legal and bureaucratic language. Boston Globe link. It is just another component of the ACA that has been delayed and leaves us wondering, if ACA will ever become a reality.
Complete list of all delays. |
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