Hedge Funds Health Care
Hedge Funds Struggling with Rising Health Care Costs
One often over-looked aspect of hedge fund operations is getting some attention this week: health care. According to a survey conducted by the SKCG Group, hedge funds are paying higher health care premiums while existing coverage is being watered down to cover less or charge a deductible for what was previously covered.
A survey by an insurance broker, the SKCG Group, found that the hedge fund industry is paying more but getting less.
SKCG, which interviewed more than 100 of its hedge fund clients with assets from $250 million to $20 billion, said that premiums for hedge funds increased 6 percent to 18 percent in 2010. In part, insurance companies, the broker noted, are increasing rates in response to new health care reform.
“What’s really troubling is that some insurance companies are asking for rate hikes twice in one year,” David Parker, president of the employee benefits division at SKCG, said in a statement. “That’s a huge break with tradition.”
Meanwhile, SKCG said the coverage was being “watered down.” Case in point: One hedge fund firm experienced a 300 percent jump in deductibles for out-of-network visits. Source
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