Is it right that an insurance company raises its premiums to ALL employees???

Question

Is it right that an insurance company raises its premiums to ALL employees to pay for an increase in treating cancer for several employees?

Why don't the employees with cancer pay a higher premium, not everyone?

(Why should I pay for John's lung cancer, when he chose to smoke all these years while working with me?)

Answer 1

kinda of messed up to label john as the issue.. the cost of healthcare itself is overated every healthplan bought by a company at a certain time is bought at a group rate.. the cost of healthcare across a company for price rising issues, as well as bills not paid by others,  i'm sure even u must have a few, and the easy way the government can capitilize .... should sum it all up

Answer 2

Your employer group insurance is part of a very large pool.  It doesn't "get raised" because of one or several employees.

Answer 3

Health insurance companies are mandated by law in every state not to single out costly policy holders for a rate increase. With both group and individual policies they must increase the premium for everyone in that insurance pool. With a small group you've got a smaller number of insureds in that pool and the rate increase can be substantial. I've seen premiums for a small group inrease nearly 400% in one year to cover one sick employee.

Answer 4

that's how insurance works - what happens if you have to go to the emergency room  - would you want to have to pay that $5000 bill? or just the $100 copay - or YOU get cancer and have to pay $50,000 per year for medicine out of pocket - could YOU afford it?

Answer 5

Well, it doesn't work that way.  Health insurance doesn't "surcharge" for claims like auto insurance.  

On a group policy, the group rating tier is set when the policy is first taken out, based on individual underwriting.  

The rates won't rise, unless they rise for the tier - EVERY EMPLOYER in that tier, in that plan, in the entire state, will get that rate increase.  

Unless, of course, they shop it out, and go with a new plan - in which the rates are re-determined all over again, based on the HEALTH of the participants, not the claims paid.