In The News

• Southeast Michigan's health insurers, including Blue Cross Blue Shield of Michigan, Priority Health, HealthPlus and Health Alliance Plan, have told customers that rate increases next year are driven by a combination of regular medical cost trends along with new taxes, coverage of pre-existing conditions, regulations and additional benefits required under the Patient Protection and Affordable Care Act. While an estimated 10 percent to 20 percent of policyholders will receive lower premiums next year, insurance agents and health insurance executives confirm that a majority of clients and customers will pay a larger increase in premiums in 2014 than they have in recent years.

• Some customers have been offered early renewal options for 2014 to lock in plans from 2013 that in some cases are priced only slightly higher. But thousands of other customers have had their current policies canceled -- told by insurers their plans are not compliant with Obamacare for 2014.

• Small businesses and individuals in Michigan have complained long and hard the past several weeks to health insurers, agents and state insurance regulators over health insurance renewal quotes they have received for 2014 that range from under 10 percent to up to 75 percent or more.

• Steve Miller, account executive with Grand Rapids-based Mills Benefits Group, said small groups of all sizes are paying more. Less than 10 percent of his groups have received lower rates, he said. "The overall average is higher this year, and the dollar amount of increase is much higher for all groups," Miller said.


Health insurance rates rising
Among reasons cited: Cost trends, new required benefits
Crain’s Detroit Business
Jay Greene
October 27, 2013

Small businesses and individuals in Michigan have complained long and hard the past several weeks to health insurers, agents and state insurance regulators over health insurance renewal quotes they have received for 2014 that range from under 10 percent to up to 75 percent or more.

Southeast Michigan's health insurers, including Blue Cross Blue Shield of Michigan, Priority Health, HealthPlus and Health Alliance Plan, have told customers that rate increases next year are driven by a combination of regular medical cost trends along with new taxes, coverage of pre-existing conditions, regulations and additional benefits required under the Patient Protection and Affordable Care Act.

While an estimated 10 percent to 20 percent of policyholders will receive lower premiums next year, insurance agents and health insurance executives confirm that a majority of clients and customers will pay a larger increase in premiums in 2014 than they have in recent years.

Over the past three years, average employer health insurance costs for midsize employers have ranged from 6 percent to 8 percent, according to Troy-based McGraw Wentworth's Mid-Market Group Benefits Survey.

Read the rest over at Crain's Detroit HERE