In a Commonwealth Fund study released last week, researchers found that 31 states and the District of Columbia had marked slow downs in premium growth.

Mississippi had one of the lowest rates of premium growth in the country between 2010 and 2013 – 1.9 percent annually for single premiums and 1 percent annually for family premiums. That’s compared to annual growth rates of 5.1 percent for single coverage and 8 percent for families between 2003-2010.

“Southern tier states have benefited the most,” said the study’s lead author, Cathy Schoen, the executive director of the Commonwealth Fund’s Council of Economic Advisors. The study used data gathered from a federal survey of employers.

But because rise of high deductible plans since 2003, most employees aren’t feeling much relief. Cost-sharing in Mississippi doubled for single coverage.

In 2003, single coverage employee share averaged $503 annually. In 2013, it was $1,097, but almost all of the increase came before 2010. Most of the country saw similar patterns.

“Health insurance is expensive no matter where you live,” Schoen said.

The study’s authors noted that median income hasn’t kept pace with the growth in premiums over the decade.

“In states with relatively low incomes, high insurance cost stands out,” Schoen said.

Why now?

The biggest driving force in the slower rates of premium growth is that health care spending is down. Part of that may be Medicare rules to reduce unnecessary hospitalizations, Schoen said. But it may also be fallout from the recession as people defer elective health care.

The Affordable Care Act’s limits on administrative costs for insurance companies also are playing a role.

“The cost containment of the Affordable Care Act is working,” said Mississippi Economic Policy Center’s Corey Wiggins said in agreeing with the authors’ conclusions.

In Mississippi, Insurance Commissioner Mike Chaney attributes some of the slower growth rates to having more choices. He allowed employers the option to grandfather in their pre-Affordable Care Act group insurance plans even if they didn’t fully comply with the new law.

“We didn’t have the sticker shock that some states had,” Chaney said.

The slow growth and stable premiums has meant employers have been able to stick with their existing carriers, said Wally Davis, vice president for managed care with North Mississippi Health Services.

“I think people have stopped to take a good look at what costs are,” Davis said.

Many larger employers have increased the number of wellness and lifestyle incentives, like lower deductibles for those who control their health risk factors, Davis said. To make sure people aren’t deferring needed care and medications because of high deductible plans, Davis is seeing the use of care coordinators.

Wiggins sees two key steps to sustain the slower growth of health: Continue to expand the number of people with insurance and encourage income growth.

“Any strategy that encourages access to health insurance ultimately slows the growth of costs,” Wiggins said. “Health care doesn’t stand alone. It resonates to other areas.”

michaela.morris@journalinc.com

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