Inflation trending north of 8% these past few weeks has - I thought - taken some of the pressure off delivering our clients’ group health renewals. More often than not, premium increases have been 4-6%. Compared to the price of eggs, not bad!

Looks like that’s going to change.

I’m referring to the report this week of the “joint operating agreement” between metro-Milwaukee’s largest Health System and one headquartered out of state.

Same exact thing happened in 2018.

Space doesn’t permit a recitation of the reasons for these ‘mergers.’ Google ‘em, but unless your name is Pollyanna, you might not believe everything you find. After all, have hospital charges (thus premiums) gone down? Even once?

Also in the news, albeit with a little less fanfare, was that (all) hospitals are seeking 15% rate increases - about three times the trend over recent years -  to address the dire shortage of nurses. (Could any administrative excesses be reallocated to patient care?)

Bottom line. Expect double digit premium increases to return.

How soon might depend in part on whether the Health Systems and Insurers are locked into long term contracts. (H-m-m-m-m, I wonder if mergers allow those contracts to be re-opened?)

Sincerely,

Jon C. Rauser. (Believe it or not, the C isn’t for Cynical.)