What's offered: annual look at employee benefits in Indiana.

AuthorMcKimmie, Kathy
PositionEMPLOYEE BENEFITS

THE CONTINUED MOVE to consumer-driven health plans, voluntary benefits, executive perks, 401(k) investment education, and getting serious about wellness are some of the hottest topics with Indiana benefit experts today.

Indiana health-care premium increases ranged from 0 to 40 percent according to the Compensation Data Indiana 2008 survey conducted by Kansas-based Compdata Surveys, but the big news is--with an average increase of 7 percent, it's the lowest level increase in seven years. Last year the average was 11.8 percent, 12.8 percent in 2006.

PPO plans are still the most common type in Indiana and Compdata shows 65 percent of them had increases, an average of 7.5 percent. For those HMO and point-of-service plans with increases, the average was 5.5 percent and 6.3 percent respectively "Less than 40 percent of the organizations offering high deductible health plans had a health insurance premium increase in 2008," says Amy Kaminski, manager of marketing programs for Compdata Surveys. Those that did averaged 6 percent. "Comparatively, over 60 percent of employers had increases with PPO and HMO plans."

Why the lower overall increase in premium? Maybe the consumer-driven plans are working. Maybe wellness programs are starting to have an impact. Or maybe the market is kicking in. "There's tremendous pressure on all the carriers," says Mike Share, employee benefit producer, Tobias Insurance Group, Indianapolis. "Their stocks have been battered. There's tremendous pressure to build volume and get their margins up." As a result though, there could very well be higher premiums at renewal, he adds. "You can only hope that the competition keeps everyone in line."

High deductible health plans. "A health reimbursement arrangement, HRA, is simply just a funding mechanism that would typically be associated with a high deductible health plan," says Share. "It allows the employer to essentially self-fund a portion of the high deductible. In other words, they have some skin in the game; they have a chance to win. This would be for fully insured groups."

Although not many of his clients have gone this route yet, Share says everyone he talks to is interested in doing it and the numbers will increase. Those that do offer a HDHP, are offering it as the base plan, he says, with an option to buy up to a more traditional PPO.

Lori Pittman, senior account executive in employee benefits with The Braman Agency, Merrillville, sells products to small employers with...

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