Some Things You Need to Know Before Renewing Your Group Health Insurance Premiums

There will come a time every year when you receive a letter from your insurance agent regarding the renewal of your company’s group health insurance. And most of the time, this letter will also include a notice which tells you that the premium you need to pay will be increasing for some reason or the other. Instead of blindly believing that this is a money making tactic, have you ever actually sat down and considered why premium rates go up? Well, in this article I am going to try and explain exactly why this happens when it comes to San Francisco group health insurance plans in California:

1. The biggest and most drastic of change in the premiums is basically because of the change in the base rate. This rate usually changes depending on the changes in drug prescription and medical costs in your area. It is only obvious that any increase in medical costs in your area will obviously impact your base rate and therefore the cost of your insurance.

2. The demographics of your employees also contribute to a change in premiums. If you have an insurance plan which makes use of age band rating, then your rates may increase since multiple employees may move into higher age bands. Most price brackets are broken into 5 years. This basically means that the older an employee gets, the more the insurance premium you will have to pay for him/her.

3. A change in the number of people you have working for you will obviously change your insurance premium amount. Since each employee is worth a little part of the premium, it is easily understandable why the premium will increase or decrease for every worker who joins or leaves your organization respectively.

4. The premium amount you are paying for your employees also depends on the area in which they are staying. So if you suddenly find yourself with a lot of employees that are living in a highly rated area, your insurance premium is bound to go up.

5. The type of business which you are running also influences the insurance premium amount. There is nothing much you can do about this though. Most insurance agencies usually have a fixed rate for each industry and if they revise the rate for your industry, you along with all your competitors will have to deal with the increased rate.

So now that you know the various points on the basis of which your insurance premium goes up it will surely be easy for you to work on bringing it down as well. All you need to do is keep the five above tips in mind at all times. If you can manage to run your organization while keeping the above tips in mind, you will not only be able to maintain a steady premium rate for multiple years but may also be able to reduce it. So what are you waiting for? Start working on your renewal today.


 

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NY will NOT allow discontinued health plans to continue for 2014 per Cuomo

In his announcement, the president said it is up to the states to decide whether or not these plans would be allowed.

On Monday, Gov. Andrew Cuomo said New York will NOT offer the discontinued plans because the state’s marketplace has not experienced the same problems as the federal exchange. Because of that, Gov. Cuomo said he sees no reason for changing the current course.

As a result, CDPHP will continue to move forward with the discontinuance of plans that will not be ACA-compliant after Jan. 1, 2014. Rest assured, CDPHP has an array of plans to meet your clients’ needs, and we will work with you to help you find the best fit and make the transition as easy as possible.

We will keep you informed if any changes are necessary due to state and/or federal action on this, or any other, issue. Be sure to visit the CDPHP health care reform website for the latest updates, as well. “

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

 

Do The Right Thing Insurance

Per CDPHP’s press release today, health plans that are set for termination will indeed be terminated. All plans for 2014 will conform to the ACA metal level structures. If I may be of any service, please reach out to me.

 

cuomo

Here is what CDPHP had to say:

“As you know, President Barack Obama recently announced a plan to allow insurers to continue to offer health plans that are slated to be discontinued due to changes required by the Affordable Care Act. In his announcement, the president said it is up to the states to decide whether or not these plans would be allowed.
On Monday, Gov. Andrew Cuomo said New York will NOT offer the discontinued plans because the state’s marketplace has not experienced the same problems as the federal exchange. Because of that, Gov. Cuomo said he sees no reason for changing the current course.

As a result…

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Some Companies Not being required to provide Health Coverage

Nevada Insurance Group of Las Vegas, Nevada

For some small business owners, the law does not require them to provide or offer any benefits to its employees. However, based on statistics many top talent depend on benefits for his/her long term career.

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