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large increases in health insurance premiums

Two of the three dominant health insurers in the region intend to increase premiums by an average two digits for the next year, and the third wants a double-digit growth plans are not structured as maintenance organizations health.

The premium for an insurance plan would increase almost 36 percent.

The insurers cite rising health care costs and federal care reforms health.

The question is whether the state permit.

Under a new state law, health insurance premiums must submit to the state Department Insurance for approval before they take effect.

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

The law also means that insurers must disclose their rate plans much earlier than in recent years.

The reaction of consumers and small companies has been rapid.

"There is no doubt that there is frustration and anger," said Howard N. Silva, president and CEO of Choice Benefits Employees Group LLC, an insurance agency. "Everyone I've talked to, I can not believe some of the rate increases are as high as they are."

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

"It's crazy," he said. "It's reaching the point where health insurance payments are more than mortgage payment. "

So he went to the Amherst Chamber of Commerce insurance broker and got almost the same exact plan of BlueCross BlueShield of Western New York for $ 1,351.72 – but every three months, because now is in a group plan.

"We're talking a lot of money in savings for virtually the same plan. I still can not believe it, "he said.

"The whole industry in evolution"

In response, Employers are expected to benefit cuts and ratchet up the amount that employees and their families to pay the cost sharing – through higher deductibles, co-payments and coinsurance.

"Our customers … have come to expect double-digit increases in recent years," said Colleen C. DiPirro, president and CEO of the Chamber of Amherst, which helps small businesses obtain health insurance. "However, it is therefore easier for them to absorb the costs."

"At the end of the day, I think the whole industry is changing and people will be more acclimated to pay more out of pocket and use insurance health for those claims to avoid financial ruin as a result of a health problem, "he said." That's the only way to ensure the masses. "

The average increase requested in all areas of BlueCross Blue-

Shield was 13 percent, according to information filed with the Department State Insurance, but it increases the range of 3.9 percent in an HMO to 28 percent.

Increases ranging from less than 10 percent to 30 percent of members 10 and percent to 15 percent to 45 percent, and more than 15 percent for more than 22 percent of those covered.

Independent Health will increase rates by 10 percent overall, but increases ranging from 7.4 percent in an HMO and 35.8 percent of their health plan in small groups with high deductibles, which is not deductible changing. The 1 percent of the company's small group subscribers increased more than 21 percent.

Univera Health wants to raise rates by 5.4 percent transitions, direct pay HMO and POS plan, and 11 percent for all other products.

Insurance companies said that premiums and estimated ranges apply only to the policies of his base, before taking into account individual runners that modify the coverage of group plans. Besides, are not final until approved.

Independent Health submitted a filing fee of 1200 Page 29 of July, one of the first to, and answered questions at once with another 600 pages.

"It's a ridiculous process," said Dr. Michael Cropp, CEO the insurer.

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

Comments show anger

HealthNow, the parent of BlueCross BlueShield, had rates of 01 September and spoke with state regulators. But "we have no idea" about how the general, said Stephen T. Swift, the insurer's chief financial officer.

"They're very, very widespread," Swift said. "I am optimistic that the state approve the rates as filed, but I can not say that is any indication."

Comments the public at the State Insurance Department are running, with names in the dark, in the department's Web site.

"This is nonsense !!!!" wrote a woman who co-owns a business with her husband. Independent Health has reported an increase of 11.8 percent. "Who in the world can afford this? … The cost of health insurance is now an almost unmanageable burden. This new increase would put us out of business. "

"In these economic times to propose an average 14 percent increase in health care is absurd, "wrote another person who appears to be an insurance agent." I'm not looking forward to meeting my clients and try to explain these incredible increases while their costs rise and wages fall. "

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

A dental health professional wrote: "I wish my income increased as much as my premiums have health insurance."

As they do every year, insurance companies defended their increases as necessary to take into account the increasing costs of care to its members. Companies routinely cite high costs and demand increasing use of new technologies for diagnosis and hospital treatment, such as colonoscopies, cardiac surgery, radiotherapy and chemotherapy, and services intensive for patients during visits to the emergency room.

They also point to the high cost and complex drug use, especially drugs brand specialty injectable prescription or some of the most serious medical conditions.

"Every year, medical inflation and an ongoing increased use of medical products and services combine to reduce health care costs higher, "he wrote in his own letter Univera." To cover these increased costs, adjust the rates. "

Consolidation among service providers has also reduced competition to some extent allowing prices to return. And local insurers are quick to note that administrative costs are much lower than the national average and, especially, plans health for profit.

"Obviously, our thrust is to push rates as low as possible," Swift said of HealthNow. "We know that the concerns of our customers in terms of affordability and access. "

But they have also stepped into the waters that even the White House has found inadequate to blame to reform federal health care. Obama administration officials have warned the industry and national industry group not to justify rate increases citing reforms.

Notices called "poor"

So far, the requirements for full coverage of preventive care without co-payments projections, the elimination of annual limits and lifetime and dependent coverage for young adults up to age 26 are the only provisions reform that have taken effect.

"Independent Health has assessed the cost of the health of our members with services and benefit changes, including those issued regarding health care reform, "the company wrote in a letter to small employer groups." As such, we have determined to be adjust our premiums for 2011. "

Late last month, after the due date for submissions, the Department of Insurance issued a statement criticizing many of these notices to employers as "deficient, if not misleading, in violation of the new law prior approval." This law was designed to allow consumers to policyholders the opportunity to understand any increase in rate and comment or ask questions.

"This kind of misleading ads have the effect of confusing members and mask the reasons for a rate adjustment is requested, "the Department of Insurance wrote in his letter to insurance companies, leading to consumers and employers with details.

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