The accounting firm of Price Waterhouse interviewed 700 actuaries and employers, asking if they planned on raising their group health insurance premiums, or expected a rise in costs in 2011, https://higginscompanies.com/faq/group-health-insurance-faq%e2%80%99s/. The report suggests that premiums will rise by 9%.
For the first time ever deductibles will be $400 or higher. Still seems very low compared to my personal health insurance policy’s $10,000 deductible, https://higginscompanies.com/health-insurance/individual-health-insurance/.
One of the main reasons why premiums are on the rise is because Medicare is cutting the amount of money they pay contracted doctors, so the doctors are charging more to private insurers to make up for the loss. One way or another we pay. Doctors and hospitals are also consolidating and converting to digital records, both costly endeavors. Consolidation gives hospitals and doctors greater bargaining power with insurers, which means higher premiums for policyholders.
Arizona has higher premiums than many other states, mainly due to higher costs associated with home health care. Add another nine percent and premiums are that much closer to being out of reach.
Michael Higgins
602.405.8769
An Arizona health insurance broker.