Last month VITA, our healthcare broker, informed us that we were being given a 24.7% renewal rate by Anthem and a 6% increase by Kaiser, estimated to be about a 20% increase for combined rate increase. VITA was able to bargain Anthem down to a 17% increase in our premium rates, reducing our combined renewal rate to 14%, or equaling about $1750 per FEA member.
Healthcare Insurance rate increases have been and continue to be an issue in the State of California, and we are not the only one being hit with these double digit increases. With the wide variety of plan types out on the market, everybody is being hit with increases, many with higher renewal rates than we are receiving this year. In fact, our usage and renewal rates would be low comparatively over the last 9 years.
This does very little to soften the blow of us making a decision concerning a 14% renewal increase this year, and the economy does not help in the matter, even with the positive trends, Brown’s recent budget proposal, Prop 30 passing and a democratic super majority in the California Legislature.
While the forecasts on the economy very positive, I have no immediate news concerning the FEA’s economic state of affairs, leaving us without an easy solution in how to deal with our Healthcare...
Published on 01/12/2013 at 04:00PM