Rising Health Insurance Costs Affect Businesses in Clark County

Rising health insurance expenses are exerting significant pressure on businesses in Clark County, with some reporting increases of 10 to 20 percent this year. This trend is primarily driven by high utilization rates, indicating frequent or costly claims, which in turn drive up the premiums set by insurers. According to Rachel Lauser, co-owner of Applied Team Insurance in Vancouver, the limited availability of insurance providers—mainly Kaiser Permanente, Regence, and UnitedHealthcare—also affects pricing and options for employers in the area.

While alternative health care solutions, such as health savings accounts, health reimbursement arrangements, direct primary care, self-insurance, and high-deductible plans, exist, adopting these cost-effective alternatives isn't always feasible for businesses. Dr. Steve Baker from Main Street Family Medicine, which offers direct primary care services, has noted an uptick in interest from local businesses. Fourteen companies, including larger firms like Tapani Inc. and Prairie Electric, have partnered with his practice to reduce insurance costs. Under this model, patients pay a regular fixed fee for a comprehensive range of primary care services, which can act as a form of self-insurance for large employers capable of covering health claims directly.

Dr. Baker highlighted, "They want to do something for their employees. They feel bad they can’t do anything for their employees as health prices go up and up and up. We are working with companies that are trying to figure out alternative ways of insurance."

However, for companies like Core Commissions, led by CEO Kirt Phillips, traditional health plans remain essential to attract and retain talent. "Health benefits are a huge part of that," Phillips emphasized, as these offerings are crucial for maintaining a competitive workforce.

The broader impact of escalating health insurance costs is evident, with data from KFF, a nonprofit health research organization, showing a 6 percent rise in average individual employee premiums to $1,408 from the previous year. Family coverage premiums have similarly increased by 26 percent over the past five years, pushing the average employer contribution to $20,143 annually for family policies.

At Applied Team Insurance, Lauser assists diverse businesses facing steep renewal costs, with some experiencing hikes up to 18 percent in a single year. She noted that many employers have had to eliminate traditional health benefits or explore other options to meet employee expectations. "It’s just too expensive," she stated.

Small-business owner Andrew Nebels, who operates several Hand & Stone massage locations, spends significant sums on employee insurance but finds managing alternative benefits administratively challenging, especially in compliance with Affordable Care Act regulations. Despite considering alternatives, he remains concerned about the complexities involved.

Businesses have been increasingly incorporating auxiliary benefits like dental, vision, and wellness plans to satisfy employees' needs, Lauser observed. "Employers are getting very creative with their benefits," she commented. "They are listening to their employees and what they want, then they’re coming back to us to put a package together."

Phillips expressed the hope that the insurance market will stabilize soon to prevent further decreases in coverage and increases in deductibles. He remarked, "Every business of every size is struggling with this as well." Nebels mentioned the potential need for legislative changes, suggesting that reform could be necessary. "I think it’s broken and it has to change," he said.