At Work

Employers Shift More Health Costs To Workers, Survey Finds

I get to say it again‼️ I TOLD YOU SO! The big cost shift is on. The great slowdown in health care costs is more a function of low inflation than anything else. The moderation in premiums for employer plans is a result of a lessening of the value of those plans, including a move to the great scam of the century, the consultant dreamed up high deductible health plan shortly to be followed by the private exchanges accompanied by the defined employer contribution. 

We haven’t solved any problem, we haven’t made health care more affordable, but we have shifted the burden to workers. 

How ironic, the 40% Cadillac tax raises revenue in part by lowering lost government revenue by lowering tax free benefits and the response is tax-free health savings accounts with high deductible health plans. 



Excerpt from Kaiser Health News 9-22-15

Premiums for job-based medical insurance rose moderately — 4 percent in 2015 — but employers continued to shift in expenses to workers, according to a new survey.

The average premium for single coverage rose to $6,251 while the average premium for a family plan increased to $17,545, according to a survey published Tuesday by the Kaiser Family Foundation and the Health Research & Educational Trust. (Kaiser Health News is an editorially independent program of the foundation.)

But deductibles — what plan members pay for care before the insurance kicks in — have been rising substantially faster than total health costs.

Forty-six percent of covered workers have a deductible of at least $1,000 this year for single coverage as employers shift to “consumer-directed” plans that give members incentives to seek less-costly care. Deductibles are more than $2,000 for single coverage for almost a fifth of covered workers.

“The so-called great slowdown in health care costs has been all but invisible to consumers because deductibles have been going up so much faster than their wages,” said Drew Altman, KFF’s CEO.

The average dollar amount of deductibles for individual plans has risen by two-thirds since 2010 while premiums have risen by only a fourth, the survey shows. Worker earnings, meanwhile, rose by 10 percent, only slightly more than overall price inflation.

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8 replies »

  1. I’m no longer certain the place you’re getting your info, however good
    topic. I needs to spend some time studying more or understanding more.
    Thank you for excellent info I was looking for this information for my mission.

    Like

  2. Sorry, but if you are talking about the actual out of pocket cost for health coverage, and health services, adjusted for inflation, Americans pay less of the cost of the health services they receive today than they did 40, 50, 60 or more years ago. That $1,00 – $1,300 deductible is the financial equivalent of a $100 deductible 30 years ago.

    What you are complaining about is the fact that most people see the higher, nominal cost they pay, out of their pocket, regarding services and contributions and deductibles – but fail to adjust for the dramatically higher cost of health services.

    When my children were born 31 and 27 years ago, the total, total charged expense was less than $3,000 each. Today, if we were in New Jersey, the cost of a normal, uncomplicated vaginal delivery is > $20,000.

    In fact, employer plans shoulder much more of the burden of health coverage costs today, on average and in the aggregate (when measured as a percentage of the total cost of health coverage and services), than employer plans shouldered 30, 40, 50, or 60 or more years ago.

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    • Sorry Jack, you are wrong on this one. $100 in 1985 adjust for medical cost inflation is $383.00 today. In addition, these high deductibles today are applied quite differently from the old individual and combined family deductibles of the past.

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  3. What a scam the ACA has turned out to be. My sister’s health insurance premium is paid by her employer, but the cost per month went from $600 to $900 and the deductible went from $2,500 to $5,000. this is worthless coverage for the most part.
    She only spent $1500 in the last year on health care. This is the new high cost catastrophic plan that are only good if you need a major surgery. I wave the B.S. Flag high on this one!

    Like

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