“Employers’ Health-Plan Costs to Swell”

That was the lead story in Friday’s Wall Street Journal. (Article HERE, although you may need to be a subscriber to access.)

But then, there’s this.

Client ‘Ava’ owns a small technology business where competing for talent is especially tight. Thus, she offers her five employees extraordinary benefits; i.e., pays 100% of the premium for a $250 deductible plan. (My application seems to have been misplaced!)

Her BUCA insurer has asked for a 15.5% increase for November 1; significantly higher than the 6.5 % increases reported by the WSJ. 

But if she would raise her deductible to just $500, her Insurer would renew with a 14% decrease. (Not a typo!)

She can also switch to a different BUCA Insurer - matching her current plan design with basically the same broad PPO Network - for a premium that is 38% lower than current. (Also, not a typo!!)

Unfortunately, many of our small group clients won’t fare quite as well as Ava, but this anecdote accentuates the under-reported misconception that (experience rated) large groups always pay less for health care than (pooled) small groups.

BTW, wazzup with “Swell?”

Did Elon buy the rights to “Skyrocket,” too?