The cost of providing health insurance to small businesses in New York will likely go up again in 2012, with hikes ranging from 5% to 15%.
Based on filings with the New York State Department of Insurance (now part of the Department of Financial Services) and predictions from brokers and business owners, the rate hikes will be less dramatic than those of recent years.
For firms with fewer than 50 employees, the cost of providing coverage in the New York/New Jersey/Pennsylvania metropolitan area rose 44% for individual plans and 56.7% for family plans between 2002 and 2010. As of 2010, the average premiums in the region were higher than the national average: $5,711 for individual coverage (compared with $4,956 nationally) and $15,734 for family coverage (compared with $13,170 nationally).
[Learn more with our list of the largest health insurers in New York City, ranked by the number of enrolled members in NYC. ]
In a sign that businesses are shifting some costs of coverage to their workers, New York area employees in 2010 paid 18.7% of that premium cost for individual coverage (up from 14% in 2002) and 24% of the cost of family coverage (up from 15.7% in 2002.) Large businesses shouldered about the same percentage of family coverage premiums as small firms, but required individuals seeking coverage to pay 21.2% of the cost (compared to 18.,7% for smaller companies.).
The data come from the Agency for Healthcare Research and Quality.
Small businesses are trying a variety of measures to curb costs, with many threatening to drop coverage altogether if the hikes continue. Among those price-lowering options are switching to plans with a smaller network of physicians and facilities, dropping drug coverage, and offering high-deductible plans, often paired with health reimbursement accounts.
Federal health reforms due in 2014 include plans for state health insurance exchanges where small business and individuals could buy coverage. But it is not yet clear whether these exchanges would be able to offer those businesses more affordable plans.
This morning's Pennsylvania Health Care Cost Containment report showed that ambulatory surgical centers are one segment of the health-care industry doing well despite the turbulent economic times.
Hospital representatives complained the centers are serving only patients with heath insurance in the most lucrative service lines, while hospitals must provide care to all patients regardless of their ability to pay.
Based on filings with the New York State Department of Insurance (now part of the Department of Financial Services) and predictions from brokers and business owners, the rate hikes will be less dramatic than those of recent years.
For firms with fewer than 50 employees, the cost of providing coverage in the New York/New Jersey/Pennsylvania metropolitan area rose 44% for individual plans and 56.7% for family plans between 2002 and 2010. As of 2010, the average premiums in the region were higher than the national average: $5,711 for individual coverage (compared with $4,956 nationally) and $15,734 for family coverage (compared with $13,170 nationally).
[Learn more with our list of the largest health insurers in New York City, ranked by the number of enrolled members in NYC. ]
In a sign that businesses are shifting some costs of coverage to their workers, New York area employees in 2010 paid 18.7% of that premium cost for individual coverage (up from 14% in 2002) and 24% of the cost of family coverage (up from 15.7% in 2002.) Large businesses shouldered about the same percentage of family coverage premiums as small firms, but required individuals seeking coverage to pay 21.2% of the cost (compared to 18.,7% for smaller companies.).
The data come from the Agency for Healthcare Research and Quality.
Small businesses are trying a variety of measures to curb costs, with many threatening to drop coverage altogether if the hikes continue. Among those price-lowering options are switching to plans with a smaller network of physicians and facilities, dropping drug coverage, and offering high-deductible plans, often paired with health reimbursement accounts.
Federal health reforms due in 2014 include plans for state health insurance exchanges where small business and individuals could buy coverage. But it is not yet clear whether these exchanges would be able to offer those businesses more affordable plans.
This morning's Pennsylvania Health Care Cost Containment report showed that ambulatory surgical centers are one segment of the health-care industry doing well despite the turbulent economic times.
Hospital representatives complained the centers are serving only patients with heath insurance in the most lucrative service lines, while hospitals must provide care to all patients regardless of their ability to pay.