The dramatic cost increases for group health insurance is not only breaking the bank for employers but employees as well. From 1999 until 2012, group health insurance costs have tripled. Business managers instigated a number of countermeasures to reduce their company’s health insurance costs. In spite of cost reduction maneuvers, the cost to employers doubled in ten years.
Formerly, employers paid all or most of the premium for Affordable Health Insurance group health insurance. Companies covered employees and their families. Today it’s rare to find an employee that does not pay 25 to 50% of their own health insurance. Businessmen also switched from traditional insurance to PPOs and HMOs. Some companies took the drastic measure of self-insuring and becoming their own insurance company. Dropping the family and pushing that cost to employees reduced company costs as well. Additionally, deductibles were raised, while coverage and benefits were lowered. Today it’s difficult to find a company that has not taken some, if not all of these steps.
Over 99% have changed to PPOs, HMOs or self-insurance plans. Only a fraction of companies’ pay 100% of their employees insurance and fewer still pay family coverage. The salient point here, in spite of all the countermeasures, the cost for business to offer group health insurance has doubled in 10 short years. As you can see many of the countermeasures pushed costs to the employees.
Individual insurance in most cases runs 50 to 75% cheaper than group plans. We received an increasing number of calls from employees looking for competitive quotes on individual insurance. More often than not, an individual/family plan is more affordable and delivers better coverage than company provided insurance. This in spite of the fact that at least 50% of the group insurance cost is employer paid. We insure most of these prospects with individual policies, particularly if it’s family coverage they seek.