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News
- 11.09.06
- 10.25.06
- 09.05.06
- 06.21.06
- 09.14.05
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Northeast Pays Highest Health Insurance Premiums in Country
HMOs & PPOs Remain Plan of Choice for Insured
Windsor, CT/September 14, 2005 - The average family living in the Northeast pays $1,022 for health insurance premiums - higher than any other part of the country. According to a recent survey, over the past year, average health insurance premiums have increased 9.6 percent. While premium increases in the Northeast mirror the national average, annual premiums start out 11 percent higher.
Lindberg & Ripple, a leading financial and employee benefit services company, recently participated in a national survey conducted by the United Benefits Advisors (UBA), an alliance of the nation's premier independent benefit advisory firms. Among its major findings, the Northeast stood out due to its richer level of benefits, according to the 2005 UBA/Igenix Health Plan Survey.
"Lower health insurance deductibles, more robust health plans, higher cost of care and state mandates are driving higher premiums," said Bill Lindberg, executive vice president, Lindberg & Ripple (LRI). "In addition, consumer utilization is also a major factor in rising costs. Overall, employers will continue to see premium increases over the next year with average increases around 12 percent."
Demographically, the Northeast region is a tight population with a high concentration of people with close accessibility to hospitals. "Consumers have more opportunity to seek quick medical attention, without the inconvenience of traveling long distances," added Lindberg.
Among the survey's findings, the Northeast has a dramatically higher prevalence of HMO and $0 deductible PPO plans. Nearly 42 percent of employers offer the HMO plan, versus the national average of 24 percent. Sixty-four percent of the region's PPO plans have no in-network deductible versus the national average of 16 percent.
"The Northeast was slow to get to managed care and now we are slow to leave it," said Bob Lindberg, executive vice president of LRI. "Over the next several years we should see a shift away from 100 percent coverage to more consumer directed cost-share options."
In fact, while Consumer Directed Health Plans (CDHP) begin to increase in popularity nationwide with 2.6 percent of employers offering these types of plans, the Northeast lags behind with less than one percent offering this new option. A significantly larger percentage of employers are considering adding this plan over the next year.
Survey Snapshot
On average, the following is the average monthly premiums for all employer-sponsored plans for the Northeast versus nationwide costs:
|
Individual Policy |
Family Policy |
| Northeast Premium |
$371 |
$1,022 |
| Nationwide Premium |
$327 |
$927 |
On average, the following is the percentage of employee contribution for health insurance policies in the Northeast and nationwide:
|
Individual Policy |
Family Policy |
| Northeast Contribution |
19.6% |
34.6% |
| Nationwide Contribution |
16.9% |
42.5% |
The 2005 UBA Igenix Survey consisted of responses from 12,176 health plans sponsored by more than 8,700 employers nationwide.
About LRI
Lindberg & Ripple, Inc., founded in 1981, provides comprehensive financial counseling to build, protect and preserve wealth for its clients. Services include wealth transfer, investment management, employee and executive benefits. LRI is a registered representative offering securities and advisory services through M Holdings Securities, Inc. and is a charter member of United Benefits Advisors. For more information please visit www.linrip.com.
About UBA
UBA is one of the nation's largest employee benefits advisory organizations with over 1,600 experienced benefits professionals located in more than 150 offices across North America. As an alliance of the nation's premier independent benefits advisory firms, UBA members are better positioned to help employers and employees respond more efficiently and effectively to the challenges of an ever-changing employee benefits marketplace.
Media Contacts
Crimson Communications
Amanda May Sirica
T: 860.677.5032
E: amanda@crimsoncomm.com
Shannon Eterginio
T: 860.677.5031
E: shannon@crimsoncomm.com
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