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June 2011

June 3, 2011 by  
Filed under Newsletter

Massachusetts Health Insurance Exchange Offers Lessons for Oregon
Recently the Oregon Legislature passed a bill that laid the groundwork for what will become Oregon's Health Insurance Exchange (an artificial marketplace for individuals and small businesses to purchase healthcare). The former Director of the Massachusetts Exchange recently spoke in Oregon about the successes of their program. The article is perhaps not as interesting as the commentary that followed. It's certainly an interesting point/counterpoint on the whole issue of exchanges!

Massachusetts health insurance exchange offers lessons for Oregon

Tax Benefits to Sole Proprietors for Healthcare Reimbursement Arrangement Plans
For both employers and employes HRA's can have financial advantages. Typically these advantages have not been available to owners and sole proprietors. This article highlighs how everyone can take advantage of HRA's.

Tax Benefits to Sole Proprietors for Healthcare Reimbursement Arrangement Plans

Who is the Most Profitable Insurer in Oregon?
Each year the Department of Consumer and Business Services, the state agency who oversees the insurance industry reports on the health of Oregon insurers. The attached report gives some very detailed information about the financial health of insurers.

-By 2019 healthcare expenditures will account for almost 20% of GDP and the average American will consume $13,650 of health care
-17.3% or Oregonians are uninsured
-Oregon's 7 largest insurers spent, on average, $0.91 of every dollar on claims payments
-Average annual small group rate increases in Oregon 2008: 13.4%, 2009: 10.4%, 2010: 11.68%
-Federal healthcare reform accounted for about 4% of medical premium increases in 2010
-From 2007-2009 Oregon insurers lost 15% of its membership, led by Lifewise (-20%)
-The average insurer profits of Oregon's 7 largest insurers 2007: 2.4%, 2008: .7%, 2009: 1.1%, YTD: 2.9%
-10 year average profit margin: most profitable Providence (4%), least profitable: ODS (0%)
-The least efficient insurer: Lifewise spending almost 14% of premium on "administration"
-Providence, Regence and Lifewise show the best investment returns earning 3% YTD

Full Report

Larry Sherwood & Associates provides benefits consulting & insurance services to over 300 companies just like yours.


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