Health Plan Survey Cites Key Trends in Employer Health Plans

In spite of the passage of health care reform efforts, the 2012 United Benefit Advisors (UBA) Health Plan Survey says health care costs will continue to increase for both plan sponsors and their employees. The UBA is the nation’s largest independent benefits advisory organization. Here are some other trends in employer health plans:

1. Consumer driven health care plans (CDHPs) declined for the first time since 2007.

2. UBA Member Firms clients’ average renewal for all plan types increased 5%.

3. The average monthly employee contribution for plans with contributions for all plan types is $126 for single and $494 for family.

4. The average employers contribution to a health reimbursement arrangement (HRA) was down from 2011 for a single employee and up for a family. Employer health savings account (HSA) contributions continued to decline.

5. 81% of all wellness plans offered a health risk assessment.

6. 91% of all plans now offer an unlimited lifetime maximum benefit compared with 81% in 2011 and just 16% in 2010.

7. 48% of all covered employees also elected to cover their dependents, a 1.9% decline.

The intent of the survey is to provide employers of all sizes with the data they need to manage their health care benefit programs effectively- according to Ronald Bland of AEIS in San Mateo. Ron is a full service benefits broker with 30 years experience serving clients in the Bay Area. We have worked with him for 10 years and refer many of our business owner clients to him. Since all group health salespeople have access to the same products, Ron provides extra value with his service, support and know-how.

Ron can be reached at:  office: 650 348-6234 fax: 650 401-8261 ron@blandaeis.com | www.aeisadvisors.com

Blue Shield and Lucile Packard Work It Out- Finally

Two of the region’s leading pediatric care providers were locked in protracted negotiations with Blue Shield of California which caused them to remain outside the Blue Shield network from August 31st to October 19th of this year. With the signing of a new two year contract, both Lucile Packard Children’s Medical group and Lucile Salter Packard Children’s Hospital are once again part of Blue Shield of California and Blue Shield of California Life & Health Insurance Company Networks.

It must be noted, however, that since the new contracts are not retroactive, any services provided by the Medical Group and Hospital during the out-of-contract period will be treated as out-of-network or as being non-participating and will be paid at out-of- network rates. However, if the member was approved for Continuity of Care (COC) during that period, services that are covered under the COC will be paid at the old contract rates. These agreements will once again allow Bay Area residents to have a wider choice of pediatric care providers.

Such contract negotiations with health care providers are Blue Shield’s attempt to contain the ever rising costs of medical care. As a result, Blue Shield customers enjoy lower co-payments, deductibles and premiums.

Health insurance is a complex and often confusing subject where potential health risks and care costs have to be balanced against the cost of the policy. Working out the best balance is something that requires both experience and an expert knowledge of health care costs and options. Allied Brokers has over 50 years of insurance experience and expertise which is always at the disposal of our clients. Contact us for all your health and other insurance needs. Call 1-888-505-7988 (toll free). Visit our website at http://www.alliedbrokers.com/ to find out more about us and the insurance products and services we offer. You can also ask for a free rate quote.