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News
- 11.09.06
- 10.25.06
- 09.20.06
- 09.05.06
- 06.21.06
- 09.14.05
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NORTHEAST PAYS HIGHEST HEALTH INSURANCE PREMIUMS IN COUNTRY
-HMOs and PPOs Remain Plan of Choice for Insured-
WINDSOR CONN./September 20, 2006 - The average family living in the Northeast pays $930 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 8.5 percent. While premium increases in the Northeast mirror the national average, annual premiums start out nearly 14 percent higher.
Lindberg & Ripple, Inc. (LRI), a leading financial and employee benefit services company, recently participated in the annual national survey conducted by 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 2006 UBA Health Plan Survey.
"The continuing prevalence of lower health care deductibles and co-pays, plus increasing cost of care are driving the rise in premiums," said William Lindberg, executive vice president of LRI. "In addition, consumer utilization of services is a major factor in rising healthcare costs. While the annual trend was slightly lower than last year, we still expect to see premium increases average 12 percent in 2007."
Demographically, the Northeast region is a tight population with a high concentration of people with close accessibility to hospitals. "Patients 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, including 40 percent of employers offering the HMO plan, versus the national average of 24 percent. Sixty percent of the region's PPO plans have no in-network deductible versus the national average of 16 percent.
"The Northeast continues to be slow in its movement from standard managed care plans," said Robert Lindberg, president of LRI. "While we have seen more adoption of consumer directed plan options, plan sponsors are still carrying a higher percentage of plan costs.
We have seen an increase in the number of employers offering Consumer Directed Health Plans (CDHP) nationwide with 5.8 percent of employers offering these types of plans, the Northeast lags behind with 3.5 percent offering this."
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 |
$372 |
$930 |
| Nationwide Premium |
$331 |
$817 |
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 |
28.0% |
39.2% |
| Nationwide Contribution |
26.9% |
45.3% |
The 2006 UBA Health Plan Survey consisted of responses from 13,843 health plans sponsored by more than 9,611 employers nationwide.
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About LRI
Lindberg & Ripple, Inc. (LRI), 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 1,900 experienced benefits professionals located in more than 160 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 Contact
Crimson Communications
Shannon Eterginio
T: 860.677.5031
E: shannon@crimsoncomm.com
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