Bad news if you are a small employer who purchases NY Health Insurance or NJ Health Insurance. According to the Bureau of Labor & Statistics over the past five years, NY health insurance premiums and NJ health insurance premiums have increased by 27%. However, employee’s contributions have climbed by 47%, wages were raised by 18%, and family policy shares boosted to an average of 14% and will continue to increase at the same rate in 2011.
Concerned employers are taking steps to protect their workers:
- Propose health savings accounts only: Firms are offering two health plans. One plan with lower deductibles and lower out of pocket costs in addition to a higher employer contribution to the HSA and higher worker premiums. The second includes higher out of pocket costs and higher deductibles, smaller company contribution to the HSA, and lower premiums. For more information Click this link All About HSA’s , which was put out by the United States Treasury
- Relieving lower paid employees of large out of pocket expenses
- Embrace the most-cost-effective providers: Patients who visit highly accredited medial centers are exempt from co-pays and cover expenses. Co-pays will fall to 10% for patients who visit top rated physicians and medical centers. Those who travel out of the network will be raised 40% to 50%.
- Allocate NY health insurance premiums & NJ health insurance premiums according to number of individuals covered: The larger the family, the higher the premium.
- Eliminating or decreasing coverage for spouses
- Increasing the stakes for unhealthy decisions and behaviors: Lower premiums and benefits for those who constantly engage in wellness programs to become healthier, more fit, decrease chronic health risks, and so on, unless there is a medical consideration.
- Dropping dental and vision benefits
- Increasing specialized physician co-pays
- Terminate health care coverage for retirees
Employers DO have the choice to change carriers without losing protected status. The grandfather shield will still be in affect if the change in insurers does not dramatically increase worker’s costs or decrease worker’s benefits.
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Small Employers
Large Employers