Q.- Our premium rates increased a lot at our latest renewal. Why is this?
A.- Beginning January 1, 2014, certain employers had to amend their plans to comply with health care reform requirements. While we don't have the details of your plan, we do know that one change under health care reform impacted how premium rates are determined for businesses of a certain size.
Premium rates are no longer set based on medical history. Instead, insurance companies establish premiums based on factors including the location of the employer, the age of the employee and if the employee uses tobacco products. This might be why your premiums increased.