b'Associate Member NewsThe More Things Change, the More They STAY the Same2005 Article: In 2005, the rate of2024 Thoughts: According to the most growth of health insurance premi- recent KFF data, the percentage of firms ums declined for the second straightwith 200+ employees that offer health year to 9.2%. This is less than thebenefits has stayed virtually un-11.2% premium increase in 2004changed since 2005 at 98%; however, and the lowest since 2000 whenthe number of firms with 3-9 employ-premiums rose 8.2%. Notwithstand- ees that offer coverage has dropped to a ing the fact that the rate of growth ofmere 39%. The number of all firms (large premiums has decelerated, premiums are still increasing at threeand small) that offer coverage has dropped times the rate of the increase in workers wages. from the 69% in 2000 to just 53%. To be sure, 2024 Thoughts: Health insurance a lot of those individuals who used to have employer-sponsored premiums increased about 6.7% incoverage are now insured through Obamacare since we know 2023, and for the 5-year periodthe number of uninsured individuals in the U.S. has shrunk by a ending in 2023, the cumulativestatistically significant percent (albeit at a fairly substantial cost).increase was 22%. I did a quick and2005 Article: Preferred Provider dirty calculation based on the KFFOrganization (PPO) plans (the data and determined that premiumstype of plans offered by WMI) are increased about 5.5% over the past 25the most common type of plans years. Ive been in this business for 35offered by employers. PPO plans years and I can tell you that health insur- allow insureds to see their doc-ance premiums are cyclical and mostly driven by tor or hospital of choice, but PPO medical trend which virtually always exceeds general inflation. plans pay a higher benefit when the 2005 Article: Rising health careinsured visits a preferred provider costs are causing more consumerswho offers discounts to the insurer.and employers to drop insurance2024 Thoughts: PPO plans are stillcoverage. Three out of five employ- the most popular type of health plans, ers (60%) offered coverage in 2005,claiming 47% of enrollment; however, down from 69% five years earlier.29% of insureds are now enrolled Most of the companies that droppedin High Deductible Health Plans coverage were companies with less(HDHPs) which didnt even exist in than 25 employees. Among employ- 2005. Note: HDHPs and PPO plans are ers with 200 or more workers, 98%not mutually exclusive, but KFF lists offer health coverage. them as separate plans so the percentages above reflect KFFs methodology.WPMA News / Fall 202451'