NU Online News Service, May 28, 2003, 12:23 p.m. EDT – Group life rates have held steady since November 2002, but group medical prices have continued to soar, according to results of an informal broker survey by the Council of Insurance Agents and Brokers, Washington.
The brokers reported some signs of deflation in the group life market.
Seventy-six percent of the employers with fewer than 50 covered employees experienced rate increases between 0% and 10%, and 12% of the small employers actually saw their group life rates go down. Fifteen percent of the midsize employers and 21% of the employers with more than 500 employees are paying less for group life.
On the group medical side, premium increases of 20% or more have hit 9% of the big employers, 24% of the midsize employers and 38% of the small employers.
But some brokers and some groups have found ways to cope with skyrocketing group medical prices: at 5% of employers of all sizes, group medical premiums have gone down, the CIAB says.