The biggest surprise (and lesson learnt) from Year One of Unashig's Group Health Insurance was the 50% "loading" which the insurer added to the premium for each cover renewed in Year Two by our November/December Group. The "loading" remained too high -- particularly for those who had utilized their benefits only minimally, if at all -- even after we negotiated it downwards to 35%. As a result, only 40 renewed the premium in Year Two, compared to the 60 who had done so in Year One. Thus, the level of participation dropped to 66.7% -- even though the premium paid declined by only 5.8%.
The insurer's solution to this problem of obviously excessive "loading" -- and to what we may call "unequal pain" -- was to emphasize the importance of Members' participation in its "wellness program". The problem with this is that those who hadn't made any claim on their cover in Year One might have no incentive to participate in the insurer's "wellness" proposition.
However, as data on utilization patterns among members of the March Group have more recently become available, the case for participating in the "wellness program" has become rather more persuasive. As it turns out, the Year Two "loading" proposed by the insurer for the March Group is 10%. This is nowhere near the 50% 'incurred' by the December Group, and is encouraging. Still, we will seek to reduce it to 5% or thereabouts.
But whatever the "loading" finally agreed to, the idea of "Wellness Dividends" (outlined at the link given below) will make much more sense to each member of the March Group -- and to all Groups with nearly the same utilization rates.
READ: How to Earn the Wellness Dividend w.e.f. 2021
