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Observations as of 02.01.2010
We are seeing certain carriers with very high
2010 renewals, while others are running lower than normal. For the high
side carriers this would seem to be the results of either poor past
underwriting, higher and more costly utilization, initial reaction to perceived
action coming from Washington, shifts in group demographics (due to the shift in
employment) or our favorite new tool - predictive modeling (this is where they
predict coming claims and charge for the unknown now).
We
are seeing small groups (<150), experiencing increases from 0 to 82%.
Concerning medical trend
we are tracking it at about 12.8%
which is about 1.5% higher than last year.
Larger groups are experiencing renewals in line
with their medical experience. The carriers will reward bad experience
with a bigger and quicker hit to premium than in the past years.
We are seeing more employer considering higher
deductibles. Some deductibles are running $2,500 with a few employers
starting to consider $5,000 deductibles. Out of pocket limits are
approaching $6,000. Employers for the first time are considering the
removal of office visit copays and some looking at pharmaceutical cards.
We caution restraint in the removal of the drug cards. It's in the
interest of the employers cost to help employees with their medication as the
consequences could be costly treatment due to the missed Rx. We do believe
cutting the card dependence can result in significant medical savings. We
believe the process need to synced with reality due to dependence on them.
Consider encouraging your employees to take
advantage of the generic drug programs run by the big box retails such as
Costco, Wal-Mart, Target, etc. The retailers provide a 30 day supply of
generics for $4, and a 90 days supply for $10. Good deal, cost efficient,
and it is a step towards weaning employees from the cards.
Consider better employee communication,
health awareness programs and employee incentive programs as the big winner for long term positive results
providing improved claim control, better return on employee cost, a overall
healthier and more active workforce. We can provide access to all these
products.
01.29.2010
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