Information Center Health

Two of the three area health insurers dominant intention of increasing premiums by an average of two numbers for next year, and the third is a double-digit increase for the plans of health maintenance organizations unstructured.

Single premium insurance plan can rise almost 36 percent.

Insurers cite the rising costs of health care and federal health reform.

The question is whether the state will allow.

The new state law, the health insurance premiums must be submitted to the State Department of Insurance for approval prior to their entry into force.

The state may reject or modify the increases if regulators believe are not appropriate or justified.

The law also indicates insurance companies to disclose the number of plans much earlier than in previous years.

The reaction of consumers and small businesses have been quick.

"There is no doubt that there is frustration and anger," says Howard N. Silverstein, president and CEO of Employee Benefits Group LLC choice, an insurance agency. "Everyone I talked to can not believe some of the increases in interest rates as high as they are."

Joe Milazzo, Milazzo renovations owner of Lancaster, was already paying $ 1,200 per month for single coverage in the Independent Health Association, when he received notice of an increase of about 15 percent.

"It's crazy," he said. "It got to a point where health insurance payments are more than mortgage payments."

Then he went to the Amherst Chamber of Commerce insurance broker and obtained almost exactly the same plan of BlueCross BlueShield of Western New York for $ 1351.72 - but every three months, because now is a plan.

"We talk a lot of money in savings, almost the same plane. I still do not think so," he said.

"Across the industry-changing"

In response, employers are expected to reduce benefits and increase the amount that employees and their families pay to share the costs - by increasing deductibles, copayments and coinsurance.

"Our customers ... have come to expect double-digit increases in recent years, "says Colleen C. DiPirro, president and CEO of the Chamber of Amherst, which helps small businesses obtain health insurance. "It does not make it easier for them to absorb the cost."

"At the end of the day, I think the industry is changing and people will be more acclimated to pay more out of pocket and use health insurance for those claims to save them from ruin Following a health problem," he said. "It's the only way to guarantee the masses."

The average increase requested by the Board of BlueCross Blue-

Shields was 13 percent based on the information stored state insurance department, but the range increases from 3.9 percent in the second HMO is 28 percent.

The increases range from less than 10 percent to 30 percent of the members of 10 percent to 15 percent to 45 percent, and more than 15 more than 22 percent covered.

The price is independent of health by 10 percent overall, but increases by about 7.4 percent in an HMO to 35.8 percent for small group health plan with high deductibles, which does not change franchise . 1 percent of the subscribers of the company in small groups, increases exceeding 21 percent.

University Health wants to increase prices by 5.4 per cent of its displacement, direct-pay HMO and point-of-sale plan, and 11 percent of all its other products.

Insurers note that premiums and estimated ranges apply only to his political base, before taking into account individual "riders" that the change in coverage plans. Besides, are not final until approved.

Independent Health has presented a 1200-page filing rate of 29 One of the first to do so, and answered questions for the second time in 600 pages in July.

"The process is ridiculous," said Dr. Michael Cropper, CEO of the insurer.

Univera spokesman Peter Kates said the company submitted information in August, but had no response from the State.

Comments reveals fury

HealthNow, the parent Blue Cross Blue Shield, presented to the prices on September 1 and has spoken to state regulators. But "we have no insights into" how to govern the state, said Stephen T. Swift, Chief Financial Officer of the insurer.

"They are very, very happy," Swift said. "I'm optimistic the state will approve tariffs filed, but I can not say that we have no indication."

The comments from the public of the State Insurance Department are published with the names blacked out, the website of the Ministry.

"It's crazy !!!!" wrote a woman who is co-owner of a business with her husband. Independent Health were notified of an increase of 11.8 percent. "Who on earth can stand? ... The cost of health insurance has become an almost unmanageable burden. This new increase would bankrupt us."

"In these economic times to provide an average increase of 14 percent in health care is absurd," wrote another person who appears to be an insurance agent. "I'm looking forward to meeting my customers and try to explain these increases amazing, but increased spending and falling wages."

"I am writing to express my disgust," wrote another small business owner, who claimed to have received notice of a rate increase of 37 percent.

Dental health wrote: "I grew as much as my health insurance premium."

As they do every year, insurance companies have defended their increases are necessary to meet the ever increasing costs of care for their members. Companies routinely cite high costs and growing consumer demand for the diagnostic technology and medical treatments, such as colonoscopies, cardiac surgery, radiotherapy and chemotherapy, and patient services during visits to the emergency room.

They also highlight the high cost and sophisticated use of drugs, especially brand-name and specialty prescription or injectable medications to some of the more serious medical conditions.

"Every year, medical inflation and increased medical products and services combine to drive health care costs higher", University wrote in their letter. "Complete, these rising costs, we need to change the tax increases."

Consolidation among operators has also reduced competition to a certain extent, when prices creep. And the local insurance companies are quick to note that administrative costs are much lower than the national average and, in particular non-profit health plans.

"Obviously, our focus is to drive these rates as low as possible," Swift said HealthNow. "We know that our clients' concerns about affordability and access."

But also entered the water that even the White House has deemed inappropriate, blaming the federal health reforms. Obama Administration officials have warned the industry and national industry group does not justify rate increases, citing the reform.

Review called "poor"

So far, the requirements for full coverage of preventive care without co-payments projections, the elimination of annual limits and the duration and coverage of dependent young adults up to age 26 are only reform provisions which came into force.

"Independent Health has estimated that the cost of health services to our members and benefit changes, including those required in the reform of health care," the company said in a letter to employer groups small. "Therefore, we determined that we must adjust our premiums for 2011."

At the end of last month, when the expiration date of the deposit, the opinion of the Department of Insurance, has criticized many of these communications to employers as "deficient, if not misleading, and violates the prior approval of the new law." This law was designed to allow consumers the opportunity to understand the insured event, and add a comment or ask questions.

"This type of misleading statements the impact of the confusion and shall cover the reasons for the adjustment of interest rates is required," Insurance Department wrote in a letter to insurance companies, ordering them to offer consumers and employers with details.