Do you know what is fair and reasonable? If you meet with a salesperson telling you that their prices don’t go up, they are lying. We post information on trends so that you may understand a center point and have reasonable expectations.

The following information is our subjective review of what our clients are experiencing. We believe that our book of business does reflect an accurate general sampling of the population in the areas we serve, but our statistics are not scientifically accurate.

From 1995-1999 health insurance premiums were reasonably stable with most people receiving mid-single digit increases exclusive of age changes. With many of the major carriers instituting new plan designs that took greater advantage of PPO networks, most families were able to offset increases with more efficient plan designs. That ended abruptly in late 1999 as the effects of health reform worked their way into the health system.

In 2000 and 2001 we saw the hyper medical inflation with rate trends rising well into the teens. The public demand for more 1st dollar benefits with office copay’s and Rx cards resulted in actual increases for most families at or above 20% per year. The terror attacks and over consumption of healthcare in the months following Sept. 11th resulted in additional defensive pricing increases that lasted most of 2002.

Over the past couple of years, price increases have moderated. Part of the decrease in trend is attributable to benefit reductions and higher copays. HSA's also have helped keep trends lower. We look for 2008 to be another single digit increase year for individuals.

Please also note, that your rates can vary significantly based on health claims, age bracket changes and by carrier.

Insurance carriers are implementing new cost saving features. Many carriers are limiting the number of office visits per year, that qualify for the office copay. Additionally, most carriers are now paying non-network providers at reimbursement levels commensurate with in network providers.