Employers with health insurance costs weighing heavily on their backs should enjoy a small sigh of relief as Buck Consultants released their recent survey results of 129 insurers and administrators.   The results?  For the first time since 2001 they estimate the cost increase for health plans to be less than 10%……..only 9.9% for 2012.

The survey goes on to explain the reduction in the rate of increase is primarily due to a correction in margins insurers had previously built in for health reform as well as a reduction in elective procedures by the insured public.   During a time of such prolonged economic slowdown, people are just putting off what they consider to be elective.

Last year the trend was 11.2%.

Even at 10%, the result is a huge new nut to crack on top of already enormous numbers.  It  isn’t quite what employers were looking for in upcoming benefit budgeting.   They still long for that time when rates remained relatively flat.

It is my opinion that employers and benefit professionals should continue to push everyone to take advantage of the preventive services now available on all non-grandfathered plans.   Getting the right preventive care and continuing the expansion of Wellness Programs is vital in order to avoid the explosion of costs to follow if new disease is left undiagnosed or untreated due to cost concerns.  Employers and their Benefit Advisors cannot to overlook the proactive role they must continue promote.

If you are interested in learning more about Health Care Reform, Wellness Programs or preparing for the upcoming mandates, please contact Paula Wilson at 951-694-1009.