Premiums Rising Employers pay less for Health Insurance Coverage
Recent figures show that over the last decade health insurance consumers have been paying more for medical services covered under their employer’s policy but have been getting less bang for their buck.
Medical insurance costs have been rising and employers have been passing the bill onto their employees by making them pay a higher deductible.
Here some interesting figures: while health insurance costs and premiums went up 8% last year, the actual cost for medical services went up only 1.2%. Even though the cost of visiting the doctor went up 8%, the out-of-pocket amount paid by consumers last year only rose 2.6%, while overall visits to the doctor decreased by 1.9%.
What all of this means is that Americans are paying more for their health care coverage and are choosing to forgo medical treatment and doctor visits.
Furthermore, medical insurance premiums are out-pacing wages. Since 2001, wages have increased by 34%, while insurance premiums have doubled. At the moment, wages are on the decline, highlighting why more and more Americans are struggling to pay for medical care.
According to a report by the U.S. Bureau of Labor Statistics, overall consumer spending decreased by 2% in 2010, while 1 million Americans lost their healthcare insurance and another 1.5 million lost employer-based insurance.
These strains are forcing 48% of prescription drug users to put off visits, tests and other medical services.
In fact only the top 20% of wage earners in America spent more in insurance coverage and medical care last year. Meanwhile the second-highest 20% spent more on coverage, but chose to hold offon out-of-pocket-expenses. The lowest 20% cut both coverage and expenses.
In 2012, 66% of companies are expected to raise premiums for single employee coverage, while 73% are expected to raise premiums for dependents.
As insurance costs continue to rise, and more and more companies heap the bill on their employees, Americans will continue to receive less-than-necessary medical care while paying big bucks for their insurance.