Excellus announces rate hike
Rochester-based Excellus BlueCross BlueShield announced health-insurance premium rates will rise an average of 8.3 percent next year. Individual and family premiums will vary depending on the policy and its optional features, with rate increases ranging from 1 percent to 18 percent.
"Upstate New York isn't immune to national trends in health-care costs," stated Scott Ellsworth, company regional president.
Excellus blames the increase on a number of factors, including the aging population and access to new drugs and technologies.
"With the oldest of the baby boom generation turning 61 years old this year, health-care costs are continuing to increase because more people are using more health-care services than ever before," according to Excellus.
Alison Grems, president and chief executive officer of the Canandaigua Area Chamber of Commerce, said she expected an increase, but that doesn't make the news any easier to swallow. Every year it becomes more difficult for business owners to provide themselves and employees with health insurance, she said. In some cases, people are opting to forgo health insurance because paying the premiums would mean not being able to pay for necessities such as rent or a mortgage.
"It puts everyone in a difficult situation," said Grems, whose chamber represents 735 businesses.
An example of two plans and monthly rates, comparing 2007 and 2008:
Blue EPO Balance 5: Single policy will rise from $239.62 to $279.51; family policy, from $635.19 to $740.93.
Blue Choice Value: Single policy will rise from $302.67 to $359.49; family policy, from $802.04 to $952.61
Ellsworth stated Excellus is providing ways to reward subscribers for demonstrating healthy habits. For example, a new plan, HealthyBlue, offers up to $500 to members who qualify. The monthly rate for a single policy is $230; a family policy costs $608.
The company also encourages use of generic drugs, provides smoking-cessation programs and offers online tools to promote weight loss, he stated.
Excellus BlueCross BlueShield expects to spend 89 percent of its premium revenue this year on medical benefits, which is above the 2006 statewide average of 86 percent, according to the company.
Julie Sherwood can be reached at (585) 394-0770, Ext. 263, or at jsherwood@mpnewspapers.com.