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Northrop Grumman Corporation Message Board

  • pstorrnan pstorrnan Mar 10, 2010 1:13 AM Flag

    Goldman-Insurance rates will soar for everyone!

    Goldman Sachs hosted an investor call the other day.

    During the call. an insurance Analyst recommended investment in the major health care insurers, like Cigna or UHC, to its clients because the very limited competition among major insurers will allow these firms to significantly increase their rates to even major corporate plans without much in the way of negative repercussions for them.

    So here is the situation:

    1. The average annual health insurance premium for a family of 4 is now almost $14,000.

    2. Over the past 10 years, the average annual health insurance premium for a family of 4 has grown by 120%

    3. Using the same rate of increase over the next 10 years, health insurance premiums for a family of four could soar to $28,600.

    4. Most Aetna and Anthem individual policy holders in California have recently received rate increases ranging from 18-39% with another large increase expected before the end of this year.

    5. For a number of factors, most health care industry experts believe the inflation rate over the next 10 years will be significantly greater than that seen during the previous 10 years, >120%.

    So, if you still believe your firm will assume most of the cost increase in these premiums then you have no problem.

    However, if you believe your firm will drop coverage or let the employee assume most of the increase, then you better start saving for a rainy day and forget your retirement plan or your kids' college fund.

    Think about it!

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