Survey highlights the concerns that Colorado businesses are reporting with costly health insurance plans
Growing insurance costs are weighing heavily on businesses in Colorado, according to a new survey from Lockton Mountain West Benefit Group. The survey has found that many businesses are becoming increasingly concerned over the rising of health insurance premiums. Those that offer insurance coverage to their employers have been hit with rate increases over the past few years, largely a due to the costs that insurance companies themselves are facing.
Cost is the single greatest concern that businesses have with insurance coverage
According to the survey, 82% of businesses in the state have cited growing health insurance costs as their single greatest concern. Another 78% reported that complying with the provision of the Affordable Care Act has become a costly issue, which is ranked as another one of their primary concerns. In order to control costs, 65% of employers in the state have adopted high deductible plans, with deductibles in excess of $1,000. Some 37% have begun offering HMO plans as another way to control costs. Another 39% have begun adding health savings accounts to their plans in order to further mitigate the costs that they are seeing.
Rising premiums may become a problem for many companies
The survey suggests that the average cost of health insurance plans among employers in Colorado will grow by 8% in 2016. This projection does not account for adjustments, however, such as increased contribution from employees. When these adjustments are accounted for, the average increase in cost for an employer-sponsored health care plan is expected to be as high as 5.3%. Some employers are limiting the benefits they offer to workers in order to cut down on costs.
Some workers are being encouraged to purchase coverage through the state’s exchange
As employers begin to face higher costs, some are beginning to encourage their workers to purchase health insurance coverage through Colorado’s exchange. The exchange began offering coverage at the beginning of this month, and has successfully ensured that many consumers throughout the state had access to health insurance coverage in the past.