Do you know why your health insurance is going up?

Let me say something that may not be popular: Most companies don’t actually know why their health insurance costs are rising. They are usually told by their broker that it’s ‘trend,’ ‘utilization,’ or ‘the market’—but those aren’t the real answers.

What usually happens? The renewal shows up, a few slides are presented, everyone signs off, and then we act surprised when it happens again the next year. If you can’t clearly explain what is driving your costs, your broker isn’t helping you manage your plan; they are just reacting to it.

In most cases, the culprits are the same: a few large claims, specialty RX, or simply how the plan is being used day-to-day. I’m curious: when your costs go up, what explanations does your broker give you? If you’re interested in talking more, give me a call.