Healthcare Costs Rise as Some Struggle for Coverage
09/15/2023
Did you know that healthcare costs are on the rise, causing people to face financial struggles for coverage? It’s not just the increasing prices of food and housing that are emptying consumers’ wallets these days. Insurance premiums are also taking a toll on their pockets.
According to a recent survey conducted by health policy research firm KFF, workers are now contributing an average of $6,575 towards the cost of insurance premiums for their employer-sponsored family health insurance. This is $500 more compared to what they paid in 2022. In addition, family coverage plans have seen a staggering 7% increase in annual premiums this year. On average, families are now paying $23,968 for their coverage, compared to a mere 1% increase last year.
The surge in premium costs can be attributed to the accelerating inflation that is affecting workers and employers, as well as the rising costs of medical devices and drugs. The American Hospital Association has reported that these factors are driving up healthcare expenses. Furthermore, the industry has witnessed a series of mergers that have given insurers near-monopoly status, reducing the competition and making it harder for consumers to find affordable options.
“An era of unprecedented merger deals allowed big insurers to cement near-monopolies in markets across the country, increasing corporate profitability at the expense of affordable high-quality care,” said American Medical Association President Jesse M. Ehrenfeld, M.D.
The KFF study also unveiled that it’s not just insurance premiums that are burdening consumers. Insurance deductibles have also seen significant increases. The study shows that deductibles for individuals with health insurance plans have risen by 10% over the past five years and a staggering 50% over the last decade, reaching an average of $1,735.
While employers have been absorbing some of the rising healthcare costs, there is the possibility that this could change in the near future. The survey found that 23% of employers plan to pass on the premium costs to their workers if insurance premiums continue to rise.
These findings highlight the growing financial strain that consumers are facing when it comes to healthcare coverage. As the costs continue to rise, it is crucial for individuals and families to carefully consider their options and find ways to mitigate these expenses.
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