Businesses, consumers cope with rising insurance costs during open enrollment periods

Healthcare reform is making everyone from retired senior citizens to hard working Americans ask many questions during what's being called an uneasy enrollment process.

November 19, 2010|by Chad Plein, KY3 News | cplein@ky3.com

NIXA, Mo. — If you haven't done it yet, you know the deadline to enroll for health insurance benefits for 2011 is fast approaching. Experts say this year is unlike any other - with consumers scrutinizing enrollment forms to try to find a way to cut costs.

Healthcare reform is making everyone from retired senior citizens to hard working Americans ask many questions during what's being called an uneasy enrollment process.

Medical Benefits Group has large stacks of health insurance applications from consumers.

“We sit down and find the best plan,” said owner Jeff Broyles.

Consumers have a lot of concerns: the uncertainty of the healthcare legislation; the allowance of children's pre-existing conditions, and, most importantly, rates, coverage, co-pays and premiums are going up.

“Now, with healthcare reform making insurance companies cover those and accepting everyone, you're actually paying for the sick person,” said Broyles.

During this open enrollment season, it's not uncommon for the combined premiums paid by the worker and the company to be more than a mortgage.

“I tell my students that they believe a house is the biggest consumption, but it’s not, right? You'll spend more on insurance,” said Dr. James Philpot, a professor of finance at Missouri State University.

Health benefit costs increased roughly 7% in 2010 for employees enrolled in their companies’ group plans. Those companies will spend almost 6% more on their employees for the upcoming year.

In a national survey, 41% of companies polled said they will shift the costs to their employees, while 28% said they will not ask their workers to pay a greater share of the costs.

“A lot of Americans don't recognize how much it costs because the employer is also paying,” said Philpot.

“With the economy, cost is an important concern for their employees,” said Broyles.

The costs, in turn, could stunt the growth of small businesses.

“Firms will stay small until they can afford that next step or just not offer those benefits,” said Philpot.

Experts say, no matter what, you should find coverage because you never know what could happen.

“If you get through the year with paid insurance and didn't use it, count yourself lucky: you're healthy,” said Philpot.

Broyles said, if you don’t get insurance through your employer, you should ask an agent - that's why they're there – to try to find the best plan for you.

Philpot also suggests that older folks go to medicare.gov to find advice, calculators and, depending on your medication or treatments, what plan is best for you.

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