Q1 2012 MA health insurance rate increases are moderate vs 2011

With 1st Quarter 2012 MA renewals underway, I am seeing moderate increases in most client’s group health premiums, versus last year.  This is inline with the MA Division of Insurance approved “base rates” for Q1 2012.  When these rates were approved by the DOI last month, the average reported increase was 4.8%, with a few carriers coming in much lower. Bear in mind, these are the “base rates”, which are not adjusted for group size, average age, and other demographics.

This article compares the Q1 2012 increase to last year’s, when some businesses saw rate increases “as high as 34 percent”.  That figure is a little misleading, because the maximum DOI allowed base rate increase last year was lower- around 8%- but after demographic and age adjustments, there were certainly companies that saw 30%+ renewal offers in 2011.

It can be frustrating for business owners to read that the State has capped rate increases at 6%, then see their own renewal offers come in much higher.  My agency specializes in obtaining the absolute lowest rates for our clients.  We can often use innovative premium-saving options such as health plans with a built in Health Reimbursement Arrangement, to reduce or eliminate the sting of an increase.

Below is a breakdown of Q1 2012 base rate increases for the major Massachusetts insurers:

Blue Cross HMO Blue (5.9 percent)

Harvard Pilgrim HMO (5.2 percent)

Neighborhood Health Plan (4.3 percent)

Tufts Health Plan (4 percent)

Harvard Pilgrim Health Care (3 percent)

Tufts HMO (2.6 percent)

CeltiCare (2.2 percent)

Fallon HMO (1.5 percent)

Fallon Community Health Plan (1.2 percent)

-figures are from State House News Service