Follow Will Linkedin Twitter Facebook
Email Will Email
Financial
Aug 26, 2015

Health Care Costs Set For A Dramatic Price Increase

Sponsored Content provided by Will Brown - Owner, Will Brown Insurance Agency LLC

It may be old news to hear that health insurance will soon become much more expensive, partially as a result of the Affordable Care Act. However I was surprised to learn about the extent to which the costs will increase. According to an article that I found recently in the WIlmington StarNews, Blue Cross Blue Shield (BCBS) of North Carolina admitted that it now seeks an average 34.6 percent higher premium for insurance sold under the ACA.

BCBS also stated in June that it wants to raise rates by as much as 26 percent starting in January 2016, along with this year’s allowed 13.5 percent increase. The company’s stated justifications for the increases are that certain expectations about the health insurance overhaul law haven’t come to fruition.

Healthier customers were supposed to enroll in the second year. People who had been avoiding doctors were supposed to have gotten treatment by the second year. The thought process was that each factor would make the cost of implementing the ACA level out.

“Neither expectation is proving true,” said Patrick Getzen, vice president of BCBS. “Our claims and expenses are higher than our premiums and we need to take steps now to protect the sustainability of plans” for the future. In response to its concerns, BCBS is retrenching its offerings in 16 counties in North Carolina.

What this means is that the company’s Blue Select and Blue Advantage plans will no longer be available in some areas. Getzen said the 55,000 customers impacted by the change will be switched to lower-cost offerings with a smaller network of doctors to choose from for health care.

The main concern is that people who are ineligible for federal subsidies to assist with paying for health care will struggle to keep up with the rising costs. This reinforces the importance of Supplemental Benefit Plans, which cover the gap between what is covered by a major medical plan and what has to be paid for out of pocket.

One of the unfortunate takeaways is that as a result of the rising costs, the trend among insurance companies and employers will be to increase deductibles and decrease the level of benefits that are provided to the insured. Simply put, nobody wants to have to pass on the costs to the employee or individual. To avoid doing this yet continue to maintain business operations, deductibles will have to rise and benefits will have to be reduced.

More and more, Supplemental Benefit Plans will become a critical tool for employees and individuals to fill the gap and ensure the long-term health and stability of their well-being, as well as their finances. This point is strengthened after learning that the Supplemental Benefit Plans offered through Allstate include a wellness benefit, which pays the individual who purchased the plan for going to routine checkups, and that routine health care is one of the most effective strategies for reducing costs and increasing the likelihood of successful treatment.   

To find out more about how supplemental benefits plans can help you reduce costs and provide your employees with peace of mind, please contact me at the number below.

Will Brown is the owner of the Will Brown Insurance Agency LLC, and represents Allstate Insurance Company. Brown and his staff offer property, casualty, health and life insurance, as well as personal financial services and Allstate Benefits, one of the nation’s leading voluntary benefit plans. The Will Brown Insurance Agency has a comprehensive protection and investment product portfolio, with a strong commitment to serving families and small businesses in an advisory role. Will Brown may be reached at (910) 599-9071, or by email at [email protected]. To learn more about the Will Brown Insurance Agency, click here.
 

Brown 55906 block ad rev
Ico insights

INSIGHTS

SPONSORS' CONTENT
Brookeskipper saltair headshot2

The Risk Of Having An Improperly Sized Heating And Air System

Brooke Skipper - Salt Air
Jc300 dsc 2735

Did We Waste This Disaster?

JC Lyle - Wilmington Area Rebuilding Ministry
Tidewaterinvestmentco merrettemoore headshot

It Is Time To Hit The Road To Find Some Private Company Opportunities

Merrette Moore - Tidewater Investment Company

Trending News

Restaurants, Retailers Among 192 Businesses Receiving Pandemic Relief Grants

Staff Reports - Sep 22, 2021

Mayfaire Announces Opening Dates For New Stores

Cece Nunn - Sep 21, 2021

More Than 51 Acres Sell In Leland

Cece Nunn - Sep 21, 2021

New Restaurant Opening Saturday In Ogden

Justin Pope Williams - Sep 22, 2021

Custom Builder Moves Into New Office After Repurposing Former Church Building

Cece Nunn - Sep 23, 2021

In The Current Issue

Store Owners Share Basketful Of Hopes

Not only will it offer fresh, locally sourced meats, produce and dairy products, but the business will also have an open kitchen where baked...


MADE Winners: Exporter Category

HSM Machine Works, Marpac Yogasleep and SOS Life Sciences Corp. were winners in the MADE Awards Exporter Category....


Economist To Share Local Prognosis

“The way I’m thinking about the current situation is that it’s like taking a drug if you’re ill,” he said. “There’s the benefit in that it t...

Book On Business

The 2021 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100