CAN YOU 'BEET' HEALTH CARE INFLATION?
A continuing by-product of Obamacare is the disproportionate number of group health renewals in Q4.
This week we got our first 10/1; 18.4%.
Small groups (2-50 lives) are pooled, but this larger client is experience rated. The reports provided however don’t indicate a ‘poor performing’
group; i.e., a loss ratio > 85%.
Health Systems aren’t immune from current inflationary pressures (have you seen the bonuses they’re offering nurses these days?), so will 18% be
about average for all our Q4 renewals?
Forewarned is forearmed!
Joe Lunchbucket’s workaround for high gas prices is to cut out that road trip to Yosemite.
But there’s no escaping the $350 hit to Joe’s take-home pay. (Here’s the math; 30% of a single premium going from $526.75 to $623.67 x 12 months.
Family coverage would jump $1,267!)
To state the obvious, the cost of gas, eggs, chicken and milk will come down (JINX! JINX!) but don’t hold your breath waiting for premium decreases!
All that said, here’s a wrinkle.
Premiums are simply a pass through of what we spend on health care. Sure, Health System costs are up but what about
our utilization?
Joe, have you thought about broccoli and sneakers?
