Date: March 14, 2007
For more information contact: Eileen Mallow, Assistant Deputy Commissioner, (608) 266-7843 or eileen.mallow@wisconsin.gov

Group Health Insurance Premiums Stabilize

Madison, WI—Employers and their workers saw only slight increases in new-business monthly premium rates charged for individual and family health insurance this past year, according to a recent survey conducted by the Office of the Commissioner of Insurance (OCI).

"The results of the study are encouraging, in that the rate of increase is in the single digits. It also demonstrates why Wisconsin continues to have one of the lowest uninsured rates in the country," said Sean Dilweg, Commissioner of Insurance. "We are fortunate that over 90% of our residents have health coverage."

The increase in monthly premium rates, as tracked in an ongoing survey conducted by OCI, was closer to the average rate of inflation as compared to previous years. The rate of inflation is based on the Consumer Price Index (CPI), which for the last 12 months was 2.1%.

The survey results are summarized in a report called "Group Health Insurance Index, January 1, 2007."

Employer groups of all sizes experienced significantly lower increases, on average, than past years. The average increases from January 2006 to January 2007 for single and family coverage are shown below:

"The lower increase in premium rates can be attributed, in part, to Wisconsin's competitive insurance marketplace," said Dilweg. "In addition, this ongoing survey is helpful for employers and their employees as they evaluate how their specific coverage compares with the market averages."

Every six months, OCI surveys the top writers of group health insurance regarding monthly premium rates for four hypothetical groups in particular locations in Wisconsin. The policies are for new business and do not represent renewals.

OCI has surveyed the state's top writers of group health insurance since 1989 to monitor the premiums charged for group health insurance policies. The January 2007 group health insurance index shows the average, minimum and maximum premium costs, as well as the average percentage increase for January 2001 through January 2007.

The "Group Health Insurance Index" is available on OCI's Web site, oci.wi.gov. To obtain a copy of the survey results, call OCI at 800-236-8517, or mail a request to the Office of the Commissioner of Insurance, P.O. Box 7873, Madison, WI 53707-7873.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.