We are glad to welcome Matthew Martin back to Providence Benefits. Matthew first worked with us as an intern in 2018, so he joined us hitting the ground running.
Matthew is the son of Providence Benefit's owner, Andy Martin. He previously worked as the North American Marketing Director for an Asian manufacturing firm. He is now working with Chris Harris to build his expertise in major medical and GAP coverage.
Health insurance costs continue to put pressure on Alabama employers.
For groups effective October 1, 2026 and beyond, Providence Benefits received guidance that Alabama's dominant health insurance carrier increased its maximum rate increase cap from 25% to 50%.
Blue Cross and Blue Shield of Alabama has released its 2027 Blue Secure Silver and Blue Saver Bronze plans for business groups.
At first glance, both plans look similar to their 2026 versions. But once you dig into the details, there are several changes brokers should know before presenting renewal options to clients.
Some changes are minor. Others could have a much bigger impact on how employees actually use their coverage.
In the last year, Providence Benefits has seen rate increases like never before. A 20% rate increase has been on the lower side of 2026.
But now, a major change from the state's dominant health insurance carrier could make upcoming renewals even more challenging.
A major medical plan must be a group medical plan (whether a fully insured plan or an employer sponsored self-funded plan) that provides benefits for hospital confinements and requires you to pay a deductible and/or portion of coinsurance. A major medical plan does not include Medicare, Medicaid or government sponsored programs not typically considered major medical coverage (such as, but not limited to, veterans’ benefits, etc.)
In the state of Alabama GAP Insurance has a bad reputation because of the many rate increases the plans have had historically. Some companies have been moved to different insurance companies or different Third-Party Administrators 5 or 6 times in the past 6-7 years. Many well-intended brokers have blamed the carriers or the TPA’s for the rate increases and worked hard to find a carrier that promises they will not give a rate increase. What we are continuing to see is carriers over promise and then give a rate increase in a year, or two at most.
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