We just put a group of 80+ lives – The ABC Widget Company – through this underwriting drill. For a High Deductible (HSA) Health Plan, we obtained composite rates as follows: Single $276; Limited Family $553; Family $823. Depending on age and plan design, those rates are about half of guaranteed issue premiums.
But underwriting can be a double-edged sword. Not only does the insurer get to assess risk going in, but each year at renewal, based on the group’s claims experience.
ABC Widget thinks we worked a small miracle this year. If they get a 38% increase next year, then what?