First renewal of GHP exceeds expectations
Subscribers of SVMA’s Group Health Insurance and Benefits Plan are in for a pleasant surprise!
Every group benefits plan is reviewed annually by the insurance provider and new rates are set for the coming year. For small groups, they usually go up a bit … or a lot. For large groups like SVMA’s GHP, increases upon renewal will always be lower than for small groups.
The amount of increase is determined by a combination of inflation, age increases, claims history and a thing called ‘trend’. ‘Trend’ refers to increases within a health service industry that reflect their own rising costs. The standard trend for annual increases to dental services is 7-8%. The standard trend for annual increases to health services is 10-12%. This would mean that, even if all claims were exactly at target most other plans would see an increase of at least the trend factors.
What does this mean for the GHP? The GHP renews this July first for all subscribers. Are we going to have increases to rates at those levels? The answer is … NO. The increase in monthly rates upon renewal averages out to 6%. Look for this change in mid June when you receive your monthly statement or automatic withdrawal.
An added benefit for people who didn’t take advantage of previous opportunities:
- For the month of July, all individual applicants can get in on group coverage of pre-existing conditions without having to fill out a medical questionnaire.