Negotiating Premium Increase
Paige
153 Posts
We just received our premium increases for our new plan year with our health insurance plan.
Last year we were facing a 22% increase due to our claims experience (for the past two years, we had more paid out in claims than what came in for premiums) so we took the big step of switching from an HMO to a high-deductible ($2,000/$4,000) PPO with an HRA. The result was a 9% DECREASE in our current premiums.
This year, the increase in our PPO premiums is slated to be 16%. I thought that seemed a bit steep due to the fact that we had reduced our group's risk somewhat. The health insurance rep also stated that for the first 8 months on the new plan, there had been no claims loss.
So, should I try to negotiate down the 16% and, if so, how should I do it? I feel as though I don't really have a leg to stand on--it's not like I can say, "Fine--we'll just go with someone else," when our renewal is due May 1.
Last year we were facing a 22% increase due to our claims experience (for the past two years, we had more paid out in claims than what came in for premiums) so we took the big step of switching from an HMO to a high-deductible ($2,000/$4,000) PPO with an HRA. The result was a 9% DECREASE in our current premiums.
This year, the increase in our PPO premiums is slated to be 16%. I thought that seemed a bit steep due to the fact that we had reduced our group's risk somewhat. The health insurance rep also stated that for the first 8 months on the new plan, there had been no claims loss.
So, should I try to negotiate down the 16% and, if so, how should I do it? I feel as though I don't really have a leg to stand on--it's not like I can say, "Fine--we'll just go with someone else," when our renewal is due May 1.
Comments
Have your broker work on it if you have one.
1 month is enough time to get quotes and get everyone enrolled in a new plan.
Continue to try to get the rate reduced and the claims experience report from the carrier.
Good luck.