Health insurer Humana Inc. is rolling out plans that cap premium increases on three-year contracts. It doesn't take too long to figure out that there's nothing so exciting about that news. Humana raises the deductibles on existing plans and can raise them and co-payments during the contract period. Don't be fooled.
"In Chicago, Humana is introducing a plan for businesses with 51 to 99 employees called "No Worry," a health insurance package that caps premium increases for three years at 6 percent annually, or 4.5 percent if businesses also choose a Humana dental plan and agree to certain other terms. In exchange, deductibles can rise from $500 to $2,500 depending on the products being offered."
This is what a Cigna executive had to say:
"It's very easy to cap renewal increases if you are going to substantially reduce benefits," said Pat Boughey, president and general manager of Cigna HealthCare Illinois, a subsidiary of health insurance giant Cigna Corp. "I am not sure what benefit that provides to an employer in the long run."
Read the article in the Bradenton Herald.
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