HomeMy WebLinkAboutMT League of Cities and TownsMay 26, 2000
Montana League of Cities and Towns
P.O. Box 1704 - Helena, MT 59624
(4,06) 442-8768
Montana League of Cities/Towns Members
In recent days, the League and the MMIA have received numerous inquiries
regarding the pending increase in the cost of employee health insurance. In an
effort to assist our memberships we investigated the matter and determined the
following:
The Montana League of Cities and Towns Group Medical Plan received a
rate increase of 18.4% driven by the fact that during the current year the Plan
experienced a 23.5% increase in the average claim.cost per member;
Snap shot of some other association sponsored group medical plans;
MACo through EBMS - increases ranging from 30-60%;
Montana Dental Assn., a Blue Cross Blue Shield group - 23% increase
with benefit changes;
BCBS small groups (under 50 employees) - average increase 36%;
Montana Bankers Assn. - 21% increase;
Montana Loggers Assn. - 49% increase;
State Bar of Montana - 15% increase;
Montana Schools Health and Welfare Plan - 29% increase; and,
Teamsters Plan - 20% + increase each of last two years.
The cost of health care is driving these premium adjustments, specifically, huge
increases in prescription drug utilization. There was also an increase in the
number and severity of claims among the members of the municipal group.
There may be valid reasons for these increases, but the League and the MMIA
believe it is vitally important to do everything possible to control rates for the
members. We are working with our carrier BCBS and others to secure better
contractual arrangements. Blue Cross Blue Shield will be introducing a new plan
priced between the two currently available coverage options. This new coverage
will offer some premium savings to interested members. Details on this plan are
available at this time through local BCBS agents.
The League Plan has provided stable rates and good benefits for many years. In
fact, since 1996, rate increases have been limited to an average of 6.4 %, and
we intend to do everything possible to maintain this pattern of stability.
Alec Hansen ~ v Bob Worthington
MLCT Executive Director MMIA CEO