Healthcare Industry News > One Company's Story of Rising Health Insurance Premiums

One Company's Story of Rising Health Insurance Premiums

Most Americans with health insurance have faced significant increases in their medical coverage premiums in recent years, including the Harris County Medical Society in Texas.  Three years ago, the society changed insurance providers because of low quoted rates.  Near the end of the year, they learned their premiums would skyrocket by 22 percent.

In an attempt to find alternative coverage, Harris County started searching for a new provider.  One insurance company offered a low quote but the initial bid by the insurance company had been a low-ball bid.  After each of the 21 employees completed lengthy questionnaires about their health, the provider increased its quoted premium rates by 30 percent.  As a result, they continued their current coverage.  Their current provider raised the deductible on the plan to $500 that year and increased their premiums by another 10 percent the next year.

Upon further investigation, Harris County Medical Service officials found that only between 55 and 66 percent of the premiums paid by their employees were being repaid to them through claims.  Officials from the company claim this particular case is not representative and their higher premiums may have been affected by factors, such as the age and health of their employees.