Health insurance premiums in Southwest predicted to rise 7.3 percent in 2009

Health Insurance premiums throughout the Southwest, including Texas, are expected to increase by 7.3 percent in 2009, according to preliminary information released by Hewitt Associates Inc. Still, this is the lowest rate increase in the region in four years. Health maintenance organization (HMO) premiums for the Southwest region increased 13.7 percent on average last year.

Nationwide, HMO rates are expected to increase 11.8 percent -- lower than last year's initial rate increases of 13.2 percent but still on track to outpace inflation.

Officials with Hewitt expect employers in the Southwest will be able to reduce overall rate increases next year by two or three percentage points through aggressive negotiations, changes in plan offerings and designs and an increased focus on employee health and productivity.

As the economy continues to weaken, Hewitt expects to see more companies move away from traditional employer strategies, such as cost shifting toward more aggressive and innovative steps to mitigate health care costs. Among these trends is an increasing focus on improving employee health and moving to self-insured plans.

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