As USA Rugby reviews the renewal of the member accident policy, it is once again faced with increased premiums based upon the claims paid out to date. Claims for year one with Zurich are estimated at over $4,000,000 while claims in year two with Nationwide are currently estimated to reach $750,000. The result is a proposed 5% increase in the policy premium which would now put the premiums in excess of the $10 dues increase that was approved 2 years ago.
Next week the USA Rugby Board will be discussing this issue and I believe that presenting feedback from Congress at the meeting should be an important part of the process. I would therefore like you to provide me with feedback on the options below.
Option 1 – USA Rugby drops the member accident policy altogether and reduces member dues by $10 for Senior, College, HS and Youth, Coach, Ref and Admins. No reduction on Rookie Rugby, Eagle Supporters Club or Club Fee categories as those were not increased at the inception of the policy. The impact on the USAR budget would be flat, and the membership waiver would, again, require that all members carry medical coverage in order to play.
Option 2 – USA Rugby implements deductible increases on the current policy. While there have been a variety of options proposed, we would likely consider no increase for members with primary insurance and a $500 increase for members without primary insurance. This would be the only change to the policy for the 2013/2014 year and would result in $1500 ded for members with primary medical and $3500 for members without primary medical.
Option 3 – USA Rugby can increase the membership rates, approx $10, and continue to provide the policy that would decrease deductibles to levels similar to year one, $1000/$2500 and would eliminate the 80/20 coinsurance provision ($1000 deductible would not be disappearing). We would have to get firmer pricing so this is not a guarantee. The plan would not be identical to year one, and we cannot guarantee we could sustain this in the long term. If we improve benefits then the claims will go up significantly, which means future premium increases. In the short term $5 per member would suffice but in the long term, a $10 increase may be necessary to continue the policy.