The big news in the health insurance world last month was the release of the Kaiser Family Foundation’s 2011 survey on employer benefits and premium levels. As a respected non-partisan, non-profit research organization, KFF’s analyses carry weight and credibility in the policy world. And this year, the news wasn’t so great.
The average premium for family coverage rose nine percent, to just over $15,000. To put this into perspective, coverage cost about $7,000 in 2001. To make things worse, over the last decade, this doubling of insurance premiums has overtaken the increase in wages – only 34 percent. In the last couple of years, the rise was very modest – only three percent in 2010, for example. This huge nine percent jump has set off the fire alarm in the health policy world, raising questions about the efficacy of the health reform bill and the ability of businesses to recruit new workers, and raising speculation about what might have caused such a spike, whether it was a one-time increase or if we are sitting on the brink of a rollercoaster.
There are a few different ideas out there. Some of the reform provisions, such as the expansion of family coverage until age 26, widened preventative care, inclusion of those with pre-existing conditions, mean that insurer simply have higher costs, which they offload onto customers through higher premium payments. Some suggest that insurers are simply building a cushion in expectation of the higher costs that await them down the road. These costs will take the form of reform-mandated investments, such as insurance exchanges and quality improvement programs, as well as marketplace realities, such as hospitals consolidating and charging higher prices and people seeking more care whenever the economy begins to thaw.
Many variables still remain for businesses out there. A big one is workforce age: a firm employing young, single, healthy workers may see a moderate or negligible increase in premiums; those hiring older workers with more complicated health circumstances and one or more family members could be in trouble.
At HealthGlobe, we’ve been able to design customized solutions for some of our corporate clients interested in building out a more affordable delivery network into their benefits scheme. This includes our domestic affiliates. who manage conditions related to chronic illness, such as weight control, and/or our international centers of excellence where customers achieve 50-70 percent cost savings. The emphasis is on flexibility and convenience – medical travel is not the best solution for everybody. With rising prices, a changing workforce and diversifying corporate profiles however, a center of excellence approach that includes medical travel as a high-quality, low-cost option will soon start to turn the heads of some employers. Here’s a link to a video of HealthGlobe’s Founder and CEO Jeff Carter discussing what we sometimes call “Focused Medical Travel, but really represents the “Center of Excellence” approach.


