Preliminary information from Hewitt Associates indicates that health insurance premium rates in the Southwest, including Texas, will increase by 7.3 percent in 2009 — the lowest rate increase in the region in four years and down almost 50 percent from 2008.

Last year, HMO rate increases for the Southwest averaged 13.7 percent.

Nationwide, health maintenance organization 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.

Hewitt expects employers in the Southwest will once again 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.

Hewitt Associates is an Illinois-based global human resources consulting firm.

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