This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.
Continued increases in prescription drug costs are "the number one driving factor” for increasing health insurance premiums, according to testimony from Wyoming Insurance Commissioner Tom Glause, who was appointed by Gov. Matt Mead (R), at a subcommittee hearing on small business health care costs held by the Senate Committee on Health, Education, Labor and Pensions.
“Health care determines the cost of health insurance. Health insurance doesn’t dictate the cost of health care,” Glause said.
Comments from Glause and other Republican-leaning stakeholders at the hearing were an indication that mortgage-level prescription drug prices are garnering widespread opposition.
Tom Harte, head of an employee benefits company in New Hampshire who spoke on behalf of health insurance brokers, said that between 26 percent and 28 percent of health insurance premiums go toward prescription costs, which can cost as much as $100,000 a month for some enrollees.
In addition to prescription costs, Harte said, his clients are facing “double-digit rate increases” for health insurance premiums. Moreover, deductibles have increased by 47 percent from 2009 to 2014, and many people have unaffordable annual deductibles of $5,000 to $6,000, he said.
Several of the people testifying at the hearing called for giving businesses more flexibility in offering health care coverage to employees.
Warren Hudak, president of an accounting firm in central Pennsylvania who testified on behalf of the National Federal of Independent Business, called for Senate passage of the Small Business Health Care Relief Act (H.R. 5447), which the House passed June 21. The bill would allow businesses to offer health reimbursement arrangements to employees without being penalized.
The Internal Revenue Service issued guidance in 2013 prohibiting the use of such employer payment plans to pay employees' health insurance premiums. Subsequent guidance similarly prohibited stand-alone health reimbursement arrangements.
Stay on top of new developments in health law and regulation with a free trial to the Health Law Resource Center. Learn more about Bloomberg Law and sign up for a free trial.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to books@bna.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to research@bna.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)