According to NAW, the average increase is 19%. Only wholesaler-distributors with more than 500 employees deviate to any significant extent from the industry norm. The average increase for these large employers is 16%.
NAW also says that 94% of the companies participating in the study said that if the current trend continues, they plan to implement a combination of cost-cutting options including higher employee premium contributions, higher deductibles, and dropping coverages.
NAW is currently working to provide wholesaler-distributors with an affordable option for private health insurance, and recently unveiled a new association-sponsored program with Flexible Benefit Service Corporation (FBSC) as its partner.
According to George Valiga, vice president and general manager of the NAW Service Corporation (NAWSC), “FBSC provides wholesaler-distributors with a powerful new healthcare alternative to combat double-digit insurance premium increases that threaten to make current coverage unaffordable.”
For information on the program, visit http://naw.flexiblebenefit.com (website).
Publication date: 04/29/2002