An insurance broker's survey finds little change in the rate of increase for group clients over the past six months as employers shift more of the cost burden onto their employees, the Council of Insurance Agents & Brokers said.

The Washington, D.C.-based association's six-month survey of group medical and group life plans finds little difference in the rate of increase over the previous six month survey, the council said.

For small accounts, 50 or less employees, and medium-size accounts, between 51 and 500 employees, the bulk of the increase was in the range of 11-to-15 percent. For large accounts, those with 501 or more employees, 46 percent experienced increases in the 6-to-10 percent range.

For small accounts, 47 percent experienced increases in the 11-to-15 percent range, unchanged from the prior report. The increases were evenly split at 16 percent of small accounts with increases of 6-to-10 percent and 16-to-20 percent.

This compares favorably to the fall's six-month report where 20 percent of small accounts experienced increases of 6-to-10 percent and 19 percent of the accounts experienced sharper increases of 16-to-20 percent.

For medium-size accounts, 39 percent saw increases in the range of 11-to-15 percent, closely followed by 36 percent seeing rate increases in the 6-to-10 percent range. This compares to the previous report where 44 percent of these accounts had an 11-to-15 percent increase and 35 percent had a 6-to-10 percent increase.

The 46 percent of large accounts with increases of 6-to-10 percent was a one percentage point increase over the previous report. Only 18 percent of large accounts were up 11-to-15 percent, again a one percentage point increase over the previous report.

In its commentary, CIAB said brokers are finding more and more employers shifting certain costs onto their employees in order to hold down the rate of increase. Higher deductibles and co-pays, increased share of premium costs and assessing prescription drug co-pays were the primary strategies used to keep prices in check, CIAB said.

Eliminating the benefit was the least popular option companies took, the survey found.

For all three size accounts, close to or more than half had no percentage of change for group life accounts, CIAB said.

Special Reports /

Little Change Seen In Group Medical Benefit Increases

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