After several years of small increases, Wichita area employers are bracing for major hikes in their costs to provide health insurance to employees. Already, some employers are feeling the pinch as insurers pass on cost increases that in many cases exceed 30 percent. And I don't see it turning around real soon.
Experts say rising prescription drug costs are a main cause for the increase.
The research and testing that goes into creating new drugs is costly to pharmaceutical companies, and those costs are passed on to the employer and consumer. Isley says he's passed along increases as high as 50 percent to some employers. Jack Graham, an employee benefits and life insurance producer for Hilb, Rogal and Hamilton Co., echoes Isely. Last week I delivered a 31 percent and two 21 percent increases. It's as traumatic for us as the recipient.