Consumer groups and regulators are anxious over the 2016 premiums being requested by many insurers. They should be. The myth of affordable health care is quickly evaporating. While basic health care inflation has slowed somewhat, as you can see below the balloon has been squeezed by drug costs.
Even more important for the individual is the ongoing shifting of costs to workers. Part of this shift, which makes a joke of affordable health care, has been caused by Obamacare, its mandates, fees, taxes and many administrative burdens for employers. The only Americans enjoying affordable health care are those receiving significant premium and out-of-pocket cost subsidies
“Pharmaceutical costs spike in 2015. Prescription drug costs spiked significantly, growing by 13.6% from 2014 to 2015. Growth over the previous five years averaged 6.8%. The 2015 spike resulted from the introduction of new specialty drugs as well as price increases in both brand and generic name drugs, increases in use of compound medicines, and other causes. Since the MMI’s inception in 2001, prescription drugs have increased by 9.4% on average, exceeding the 7.7% average trend for all other services. Prescription drug costs now comprise 15.9% of total healthcare spending for our family of four, up from 13.2% in 2001. In a special section of this report, we examine prescription drug trends in greater detail.
Employees continue to shoulder an increasing percentage of healthcare expenses. The total employee cost (payroll deductions plus out-of-pocket expenses) increased by approximately 43% from 2010 to 2015, while employer costs increased by 32%. Of the $24,671 in total healthcare costs for this typical family, $10,473 is paid by the family, $6,408 through payroll deductions, and $4,065 in out-of-pocket expenses incurred at point of care.”
via 2015 Milliman Medical Index – Milliman Insight.
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