Premiums inside the exchange are skyrocketing across the country. With BeniComp Advantage, employers can identify, realign, and manage health risks to control 2017 healthcare costs.
TAMPA, FL (PRWEB) NOVEMBER 04, 2016
November 1st marked the start of exchange sign-ups for 2017 Obamacare coverage. While rates vary in different states, most insurance premiums rose by an average of 25% around the country. Arizona appeared to have the worst outcome with an enormous 145% increase. There are many reasons rates increase, but a big factor is because insurance companies are leaving the market. Aetna is exiting the exchange in 11 states for 2017; UnitedHealthcare is exiting 31 states; and Blue Cross Blue Shield of Tennessee has announced their departure of three of the state’s largest exchange markets. Is Obamacare imploding?
Tennessee insurance commissioner, Julie Mix McPeak, said recently the exchange in her state is “very near collapse” as she agreed to premium increases of up to 62%. This was after rate increases were authorized in August for an average of 46% for Cigna and 44% for Humana. But while the exchange immediately impacts individuals, how is it impacting employers?
According to Kaiser Health News, big employers can expect health costs to rise 6% in 2017. Although it may be an average increase compared to previous years, new surveys show that it surpasses economic growth. “These cost increases, while stable, are both unsustainable and unacceptable,” said Brian Marcotte, CEO of the National Business Group on Health, a coalition of large employers that received responses from 133 companies.
No longer able to afford health care at current rates, many employers have turned to high-deductible health plans. However, raising deductibles and shifting health costs to employees is only a temporary fix, and puts financial strain on employees. In order to truly control health insurance expenses, companies need to make changes that will help control claims.