Healthcare Costs Continue to Rise
The average monthly premium for an Affordable Care Act benchmark health plan in 2014 was $273. In 2020, the average was $462. That’s an increase of over 69% in six years. Out-of-pocket limits for ACA plans in 2014 were $6,350 for an individual and $12,700 for a family. In 2020, those limits are $8,150 and $16,300 respectively — an increase of over 28%.
What Keeps Health Insurance Costs Rising?Factors that contribute to healthcare’s increasing prices include:
- The administrative costs of healthcare providers, which makes up 30 percent of total healthcare spending, and
- Preventable chronic health conditions that manifest themselves into expensive diseases such as diabetes and cancer.
Additionally, the growth of the senior population, the fluctuating costs for prescription drugs, and the misuse of healthcare (like emergency room visits for non-emergencies) are all contributing factors.
Growing employer contributions are another reason it may feel like health insurance costs are rising. Workers with employee-sponsored healthcare coverage are spending more of their hard-earned dollars on health insurance. In the last decade, workers’ monthly contributions to employer-provided health insurance for family coverage increased by 54%.
Possible Remedies for High Individual & Employer Plan CostsThe best solution for an individual or family dealing with rising health insurance costs is to do some homework.
- Take inventory on what your typical healthcare needs and spending look like.
- Get educated on the different plans and cost-shares (copays, coinsurance, and deductibles) that accommodate them.
- Find out if you are eligible for tax subsidies that can significantly lower the cost of premiums.
- Make a careful decision to match your needs to a plan that works best for you.
HealthMarkets Can Help
If you are still feeling lost, don’t hesitate to ask for help. Even with health insurance costs constantly changing, we can help you weigh your options, find benefits that suit your individual needs, and check for your available tax subsidies. We provide unbiased help at no charge and will help you find plans for the same price you’d pay directly from the insurer. Get started online now.
https://www.milliman.com/en/insight/2019-milliman-medical-index | https://www.kff.org/health-reform/state-indicator/marketplace-average-benchmark-premiums/ | https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/hhs-proposes-2020-oop-maximums.aspx | https://www.kff.org/health-costs/issue-brief/data-note-americans-challenges-health-care-costs/ | https://www.thebalance.com/causes-of-rising-healthcare-costs-4064878 | https://www.kff.org/report-section/ehbs-2019-summary-of-findings/