ARCC Apologizes to Members with Health Insurance

Most of the new 2010 health insurance rates are in to the ARCC. Unfortunately, all of the rates are going up - - from a "low" increse of 17% to a high of 43%.

For example, a sole proprietor purchasing a family-plan to cover their spouse and a child will need to pay $2,407 more in 2010 versus 2009. This increase means they'll pay $16,644 in 2010 for a plan with the same benefits and co-pays as they had this year.

These dramatic increases in rates has prompted the ARCC to send a memo to all of our members with health insurance through the ARCC. The memo and the first 2010 invoices are set to be mailed later this week. Here's what the memo says:

I feel compelled to start this memo to our members by saying; “we’re sorry!”

We’re sorry that our state government increased the taxes assessed to health insurance policies now being passed along to you via higher rates. We’re sorry that state mandated coverage for a variety of worthy causes is giving justification for the insurance companies to raise rates even more. But most of all, we’re sorry that our advocacy in support of legislation that would allow New York’s Superintendent of Insurance to review, approve, modify or deny rates has been bottled up in our dysfunctional state government for several years now.

The fact is that New York’s health insurance companies operate under what’s called “File and Use.” This means that they file their health insurance rates and use them. They can raise rates as much as they want and for whatever purpose they deem appropriate. If later the state finds that any insurer grossly overbilled members, they can seek a credit but often times this is too little too late for businesses that were forced to cancel their insurance or to change plans.

Knowing that saying “sorry” is NOT enough. The Chamber partnered with Capital Financial to help our members gain access to additional resources, plans and information. Through our partnership with Capital Financial, we’ve helped a great many local small businesses to find more affordable options. From switching to other carriers, to evaluating the costs and benefits of high deductible plans, to seeing if you qualify for Healthy New York, now is the time to explore every option and Capital Financial and the ARCC are here to help.

So our best advice to you is two fold…

Contact Cheryl DiPasquale at Capital Financial at 793-2885 to find out what options you might have if you are overwhelmed by the increased costs of your existing plans.

Contact Senator Little, Assemblywoman Sayward, and Assemblyman Jordan and urge them to do something - - such as pushing to replace the file and use system with a “prior approval” system that will allow the Superintendent of Insurance to approve or deny rate increases annually.

Lastly, please do not hesitate to give us a call too if we can help in any way. For instance, we can work with you to arrange for monthly payments of your premiums if that will make a difference. We’re open to other suggestions you may have as our elected officials talk about health insurance reform while rates skyrocket and nothing gets done.

Once again, we’re sorry!

Todd L. Shimkus, CCE
President/CEO
Adirondack Regional Chamber of Commerce