Large U.S. employers may be outbargaining smaller employers in the benefits market.[@@]
Researchers at the Council of Insurance Agents and Brokers, Washington, have published data supporting that conclusion in a report on an informal survey of CIAB members conducted earlier this fall.
Rate increases seem to be slowing for employers with more than 500 employees.
CIAB members say that only 33% of large accounts have faced group health rate increases of more than 10% in the past year, while 37% of those accounts have seen their group life rates fall at least 10% over the same period.
Back in 2004, 40% of large employers were facing group health rate increases of 10% or more. Only 25% were seeing group life rates come down 10% or more.