Wednesday, July 21, 2010

Arizona Tells Employees Health Insurance Will Skyrocket

State and university employees with families can expect to see their monthly health-insurance costs rise as much as 37 percent next year, depending on the type of plan they choose.

Figures provided by the Arizona Department of Administration show that health plans for families and single adults with children will shoulder the most-expensive monthly premium increases beginning Jan. 1, while individuals will pay modest increases.

The Department of Administration cited federal health reform as the reason the state's health plans will carry "greater expenses and higher premiums for members," according to a June 30 letter sent to about 135,000 state and university employees and their dependents.

The letter named two provisions that the state expects will drive health-insurance costs higher. One is a requirement that insurance plans provide coverage for dependent children up to age 26. The other is the federal legislation's ban on lifetime limits, an insurance-industry practice that cuts coverage once an individual's medical expenses exceed a set amount over their lifetime.

Read more: http://www.azcentral.com/business/articles/2010/07/21/20100721arizona-workers-to-see-insurance-fees-increase.html#ixzz0uKMxvSta

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