Insurance costs to increase

Board of Regents expected to approve 15 percent rise, to become effective in August

Web posted May 10, 2000

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By Shannon Womble
Morris News Service

ATLANTA -- Insurance premiums for some University System of Georgia employees likely will jump 15 percent in August if the Board of Regents approves the measure today.

The premium increase received unanimous approval by a Regents committee Tuesday and will affect about 77,000 members enrolled in the Blue Cross Blue Shield fee-for-service plan. The system's HMO plans are not affected.

``It's unfortunate we have to do it, but it's a fact of life,'' committee Chairman Glenn White said.

A single employee will pay about $7 more per month for coverage beginning Aug. 1, and a family will pay an additional $15.

The premium increase is the first of two rate increases. The second is scheduled to take effect Jan. 1, but the Board of Regents hasn't decided its amount.

An additional 17 percent will be contributed by the system beginning July 1 to help offset costs.

Officials cited claim- and administrative-cost overruns as reasons for the increases. The $33 million given to the University System of Georgia's health benefits plan during the recent legislative session covered only this year's deficit and won't help curb future health insurance costs.

A preferred-provider organization approved by the Board of Regents will give employees another health care option while allowing them the types of provider choices associated with a fee-for-service plan but for less money. Although rates for the new plan have not been determined, open enrollment for the PPO is scheduled for November, when system employees can change insurance plans without penalty.

``People are pretty price conscious, and people will in fact switch plans looking for better value,'' said John Newman, associate professor of health administration at Georgia State University. ``I myself am on that plan, and I will look at the options, too.''

Mr. Newman said he enrolled in the fee-for-service plan for its flexibility, knowing that such plans often come with a higher price tag.

``People begin making trade-offs with access to care and premiums,'' he said. ``The problem is that people are going to keep paying more on every plan because health care costs continue to rise.''

Reach Shannon Womble at (404) 589-8424 or mnews@mindspring.com.