Health insurance premium renewal rates increased an average of 6.2% for all plans in 2015, up from the previous year’s 5.6% increase, according to new survey data released by United Benefit Advisors (UBA), an independent employee benefits advisory organization. Small businesses with fewer than 25 employees, which account for five million U.S. employers, were hit the hardest, finds UBA.
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“In 2014, employers overwhelmingly utilized early renewal strategies to delay moving to higher cost ACA-compliant plans and keep increases in check,” says Les McPhearson, CEO of UBA. “These delay tactics ran out in 2015 and, as a result, these small businesses (that make up the majority of American businesses) were forced into higher-cost, community-rated ACA plans.”