3 big insurance companies in Western part of New York seek for higher insurance rates for most of their plans because according to those companies the premiums just continuously rise faster than the rate of inflation. They need to increase around 10% to be able to continue with their regular operation. though, the increase will add up to the burden of most consumers and business owners they said that they cannot do anything to control the escalating cost of their premiums since it is still bringing limited effect to the insurers and their employers too.
According to a director of a life insurance, the train smashes up goes on and unluckily, whatever products were developed and whatever programs were put together; it won’t provide answers to the questions that people are looking for. Increase in premium is just the same old story every year according to Silverstein who is the CEO of Choice Employee Benefits in Williamsville. According to him insurance, being a community based product in the market is just becoming to be a burden to employers as well and not just to insurers and employees of the companies.
Insurance firms are not forced to make a decision and that is to drop down the cost of their coverage, make new plans that are affordable to the people and along with new plans, companies should also provide high amount of deductibles that will put a lot of burden to the employees. Conventional HMO companies or those that offer similar plans will look like dinosaurs in that case. But what insurance companies do is that they delay in providing health care to those who would like to get a new one.
“If companies will really take time out to lessen the expenses, they will just go over the plans where there is unluckily more of an out of the pocket cost to consumers” and that is according to Nick Siradas who is an account manager of a small insurance firm. Though, there are new premium rates, insurance companies are still finalizing the rates because under the law of the state, the insurer’s rate requests should be subjected to review by the state. Because only the state can approve them, lessen them and reject them so insurance companies cannot decide about it because the last say will come from the state. It was last year when the state lower down a lot of rate hike requests coming from different states in the US, though they weren’t able to mind about New York’s 3 carriers.
