Group Health Insurance Rates

Specific Factors That Determine Group Health Insurance Rates

Group health insurance rates are on the rise.

In 2004, employer-sponsored health insurance premiums increased an average of 11.2% in 2004—less than 2003's 13.9% increase, but food for thought when evaluating different options within your group health insurance policy, and all the more reason to get the best rate.

Group health insurance companies keep these factors in mind when evaluating your group health insurance rates. In most cases, the premiums are already established and you choose from a menu of options.

• Do you or a family member have an alternate form of insurance?
• Are you requesting single (cheaper) or family coverage?

What You Should Keep in Mind for Group Health Insurance Rates

Pay attention to the deductibles for different rates within the plan. A group health insurance rate that sounds very cheap probably is due to a high deductible. Make a decision whether you can handle that payment if the need arises.

Consider your projected use of prescription drugs, and the offerings of each level of coverage for drugs within your group insurance plan. If you or a family member regularly needs certain medication, particularly one that is not yet available in generic form, you will want to consider the extent of prescription drug coverage at each group health insurance rate.

Your company may even offer you additional compensation or other benefits should you decide to opt out the health plan altogether. Some people choose this to avoid the added expense or because they are covered by a spouse or parent.

You should take the time to check that the group has done everything possible to optimize all factors to your advantage. Spend time with the benefits office or human resources department, and if they do not offer you a benefits orientation, ask to see all materials related to the health insurance coverage they offer before making a final decision on the particular plan you want.

Employees of larger firms have more choice of different group health plans, whereas smaller firms usually just offer one. On the whole, employees of companies that offer group health insurance plans have to take the group health insurance rates that are offered or look elsewhere for individual health insurance coverage.

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