Unless you are an actuary it is difficult to understand why we are seeing renewal increases on HSA-qualified small group health plans running at a similar clip as renewal increases for PPO co-pay plans. When HSAs were first rolled out, one of the prime selling features from many carriers was that the decreased utilization would drive lower renewal increases.

However, there are several forces working against having lower renewals on a high-deductible health plan block than what is being given on the PPO co-pay block. First, most carriers do not segment their HDHP plans from their co-pay plans when administering their annual trend. This means that in almost every state HDHP plans will have to take at least the carrier’s trend increase at renewal, which generally runs at 10 percent to 14 percent.

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