Past Issues
-October 2006Contact us:
Ed Bates
952.944.5044
Mary Bates
952.942.8355
Jereme Bates
952.944.2919
Did you know?
Increased Commercial Insurance Opportunities!!!
Edward D. Bates & Associates has taken a more direct role in acquiring commercial insurance markets, which means more personalized customer service for you!
Quarterly Quote
"Courage is not the absence of fear, but rather the judgment that something else is more important than fear."
- Ambrose Redmoon
Written by Ed Bates
Well, we are to the end of 2003. At Bates & Associates, we have had a challenging but rewarding year. In the health insurance arena we witnessed again strong renewal increases for many, due to the continuing challenge of escalating drug prices and new and expensive means of treating patient’s needs. That aside, we also recognize that the United States has the best health care delivery system in the world today. The challenge however, is how to afford such a delivery system. That is why one of our founding principles at Bates & Associates is to always be willing and available to market our client’s health programs upon request, assuring the best pricing possible for them.
On the commercial side the economy still struggled in 2003 from the recession, causing insurance company investments to continue to under achieve. Knowing that investments represent an insurance company’s greatest source of corporate profits, one then realizes that when that element of income isn’t performing, then premiums to insureds must increase. At B & A, we carry our marketing philosophy on the benefit side over to our commercial endeavors. W e are constantly seeking better ways to save client dollars through proactive representation.
2004 suggests some improvement in both areas. This year brought signs of competition from the four major health carriers in Minnesota. Medica, who Mary deals with in this newsletter, took the first steps to become more competitive. They offered a one time savings to insureds and pledged to have lower increases than normal in 2004. Blue Cross and Blue Shield began an active ad campaign touting health care advocacy for insureds and programs designed to save health care dollars. If these steps continue, all of the major HMO’s will be competing for a larger share of the pie which means there could be improvement financially for the insured companies in the coming year.
On the commercial side, 2004 also shows signs of trending toward improvement. This recovery will not be quick, but pricing should stabilize for many insureds as investments begin to improve. At the writing of this article the DJIA is at 10,248 a significant improvement over last year at this time. Future investment profits will help lower your commercial insurance cost over time.
We here at Bates & Associates, would like to wish you all a happy and prosperous New Year, and we look forward to working with you in what we feel will be an improving 2004.
Written by Mary Bates
Some of you benefited last month from Medica’s “Premium Holiday in December”, and others certainly may have heard about it. Medica announced that all medical premiums would be slashed in half for the month of December, and amidst the joy and gratitude, suspicious flags were raised. “What are they up to?” One competing company administrator I spoke with, said, “it’s a game”. Well, perhaps some do see it as the “blue light special at Walmart”, but those that saved money last month didn’t care. Medica said, “the action is the direct result of an easing in medical cost increases, successful medical cost reduction efforts, and the company’s re cent investment performance”. Will this stir up the competition? I think so. Blue Cross did not increase their rates in the 4th quarter. HealthPartners has now gone totally “open access” to compete with their HMO adversaries. Preferred One continues to add more HRA and MSA plans and options. All the companies are finding positive results with health care support programs and the use of generic drugs (and now our governor has thrown his hat in the ring). Cost savings are being seen from the bene fits of exercise and good nutrition. This has yielded in discounts at fitness centers for members. This is exciting news and maybe we will see lower premium increases. It’s been a struggle, but it appears the trend has moderated, at least for the time being. So let’s ring in the New Year with good cheer for our Medica benefactors and a positive outlook for medical premiums in 2004. Happy New Year!
Voluntary Benefits - Check Them Out!
Written by Jereme Bates
What exactly are voluntary benefits and how can they benefit your business? To an employer, most employee benefits can be divided into two categories, contributory and non-contributory. Contributory means that a portion of the employee’s premium would be paid by the employer and non-contributory means that the premium would be left solely to the individual employee. Voluntary benefits by definition are non-contributory, and are made available to employees, at their expense, who find value in having additional protection. Employees can purchase such voluntary benefits as dental, long term disability, short term disability, life/AD &D, and vision. A reason you may want to investigate this option further is the positive reflection it gives you as an employer. W e all know that employees will be attracted to the employer who provides them with the most benefit options. If you offer voluntary benefits to your employees, you are oftentimes viewed as offering more long term protection and benefits than the employer down the road. Voluntary benefits will he lp attract and maintain the kind of employees you are looking for and that is something everyone can use a little help with. There are participation requirements and size restrictions, but give us a call and we can tell you if this sort of program is right for you and your business.