Colorado Employees May Face Higher Health Insurance Costs Next Year

Colorado employers likely will face a third year of health insurance premium increases, and as a result, employees may "feel the pinch" next year, the Denver Post reports. This year, Denver employers experienced a 20% to 30% increase in premiums; smaller employers faced "even steeper" rate hikes in 2001, as high as 80% to 90%. According to the state Division of Insurance, health insurance premium rates next year are likely to rise about 20% to 50%. In comparison, health insurance premium rates are expected to rise between 13% and 20% nationwide, analysts say. Many of the state's large employers have sought "ways to keep health insurance from eroding the bottom line," the Post reports. Amid an economic slowdown and higher rates of unemployment, many Colorado companies could pass the cost increases on to employees -- "something Colorado employers haven't been able to do in recent years" in a tight labor market. "There's more discussion today, especially among small businesses, that enough is enough and I'm near the breaking point," David Uppinghouse, senior vice president at Van Gilder Insurance Corp., said, adding that employers will likely increase monthly premiums and copayments for doctor and hospital visits and prescription drugs for employees next year. In addition, he said that some employers may offer only catastrophic coverage, leaving employees to pay thousands of dollars in health care costs, or establish medical savings accounts for employees (Austin, Denver Post, 8/28).