September 2016 Volume 18 Issue 9
Providing Current Information on

Health Insurance Industry Issues and Legislation

The Rush to Self-Insure for Healthcare Continues
Rising healthcare costs and the pressures created by ever increasing employee
deductibles are driving more and more small and mid-sized companies to selfinsure
for healthcare. From 2013 to 2015, the percent of companies with 100 to 499
employees self-insuring grew by 19% to 30%. The percent of firms with less than
100 people self-insuring increased by 7% to 14%, Looking ahead, the percentage of
companies moving to self-insure is expected to grow by 35% in the next two years
to 38%, according to an Arthur J. Gallagher & Company survey.
Higher Prescription Drug Prices Blame Washington
Prescription drug prices are higher in the United States than in any other country
in the world. The "most important factor" is the federal government's creation of
government-protected "monopoly" rights for drug manufacturers, according to
researchers at the Harvard Medical School.
Innovations on the Way to Help Control Costs - Improve Outcomes
Rising costs and inconsistent outcomes continue to plague the healthcare industry.
Employers' 2017 healthcare insurance costs are projected to increase by 6% for the
third year in the row. The good news is that there are a wide variety of innovations
coming that have the potential to improve care and health outcomes, while helping
to contain healthcare costs and spending.
Employee Deductibles Increase a Whopping 50%
The median in-network deductible shot up from $1,000 in 2015 to $1,500 in
2016 for employer-sponsored Preferred Provider Organization plans, according
to a just released United Benefit Advisor's survey. The survey also found that
employees are shouldering more of the cost of emergency room visits and outof-
network services.
Three Star Preferred Provider Program Additions
Freed Lori
Ashland, OR 97520

Bennett Eyecare Midwest-No
Platte City, MO 64079

Big Horn Basin Bone & Joint
Cody, WY 82414

David Cavanaugh
Alexandria, VA 22307

Elite Anesthesia of Florida
New Windsor, NY 12553

Faith Medical Associates
Cleveland, OH 44104

Genesis Healthcare System
Cleveland, OH 44193
Gouveneur Volunteer Rescue Squad
Gouveneur, NY 13642

Northeast Ambulance Services
Ravenna, OH 44266

Pelican Medical Marketing
Frisco, TX 75034

Randal Garvey, DDS
Mechanicsburg, OH 43044

Rolling Meadows Care
Waynesburg, PA 15370

United Pathology Associates
Houston, TX 77063