Health care costs are increasing at a lower rate relative to what? And by the way, if you work for a large employer, get ready for more good news

Here’s the good news, health care is increasing at an annual rate of 4-5% and everyone is jumping for joy even giving credit to Obamacare. Only a few years ago health care costs were increasing at double the rate of inflation; near 8-10% and there was a near crisis. How could we sustain increases more than double general inflation?

Guess what, 4-5% is also double and slightly more than the general rate of inflation. Where’s the outcry now? Me thinks it’s politically incorrect so now increases double the rate of inflation are good news!

Here’s more good news if you work for a really large employer. According to a Kaiser Health survey, twenty-nine percent of employers with 5,000 or more employees are considering shifting health benefits to a private health insurance exchange. That means they wipe their hands of your benefits and you choose from the plans offered; just like Obamacare.

But here is the really good news, if your employer offers you an exchange it will also allocate a fixed dollar amount toward the cost of your coverage; you pay the difference … and the employer determines the rate of increase for the contribution. Do you see where this is going?

 

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