Healthcare Costs Continue to Rise
The average monthly premium for an Affordable Care Act benchmark health plan in 2014 was $273. In 2021, the average is $475. That’s an increase of over 67% in seven years.1 Out-of-pocket limits for ACA plans in 2014 were $6,350 for an individual and $12,700 for a family. In 2021, those limits are $8,550 and $17,100 respectively — an increase of over 34%.2,3
What Keeps Health Insurance Costs Rising?Factors that contribute to healthcare’s increasing prices include:
- The administrative costs of healthcare providers, which makes up over 34% of total healthcare spending,5 and
- Preventable chronic health conditions that manifest themselves into expensive diseases such as diabetes and cancer.6
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 over $1,500.4
Possible Remedies for High Individual & Employer Plan CostsIf you receive employer-sponsored healthcare, it’s important to weigh your options. Find out the types of plans offered and any potential benefits available, such as Health Savings Account (HSA) contributions. You can also look into supplemental insurance coverage, which will help cover your out-of-pocket costs in the event of an accident or hospitalization.
- 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 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.
1.Kaiser Family Foundation. 2020. Retrieved from https://www.kff.org/health-reform/state-indicator/marketplace-average-benchmark-premiums/
2.SHRM. February 15, 2019. Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/hhs-proposes-2020-oop-maximums.aspx
3.SHRM. May 20, 2020. Retrieved from https://shrm.org/resourcesandtools/hr-topics/benefits/pages/hhs-2021-health-plan-parameters-raise-out-of-pocket-maximums.aspx
4.Kaiser Family Foundation. October 08, 2020. Retrieved from https://www.kff.org/report-section/ehbs-2020-summary-of-findings/
5.American College of Physicians. January 21, 2020. Retrieved from https://www.acpjournals.org/doi/10.7326/M19-2818
6.National Center for Biotechnology Information. February 19, 2020. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7077778/