Scott Hauge
CAL Insurance & Associates

I currently provide health insurance for all my employees and pay 100 percent of the cost for the employees only. I provide the option of an HMO or a Health Savings Account (HSA), and contribute $1000 to each employee’s Health Savings Account.

Three years ago, I decided to also offer employees a high deductible plan in conjunction with an HSA due to double-digit increases the prior three years on my traditional HMO health insurance package. However, I am now seeing increases of around 15 percent on the high deductible/HSA plan, and 12 percent on the traditional HMO plan. I was recently told that the increases for my renewal this year will be about 12 percent on my HMO and close to 20 percent on my HSA.

This is not sustainable and given the economic problems that are occurring I will be looking closely at reducing my contributions to the HSA as well as at implementing co-pays for my employees on the HMO. I don’t want to do this and I recognize the burden this places on my employees but I have no choice.