Health Insurance Costs Rose 5% Over Past Year
According to recent inflation data from the Labor Department, health insurance costs increased by nearly five percent over the past 12 months.
The February 19th report indicated that insurers have significantly increased their premiums – sometimes as much as 30 percent on a state level – and bumped up copays. In total, health insurance costs went up 4.8 percent over the past year, outpacing inflation and making the greatest jump since April 2013.
How are these numbers calculated? The Consumer Price Index (CPI) examines the weighted average of prices of all consumer goods and services. In relation to medical care, it measures the change in price of items covered by health insurance and the cost of administering services. The figures consider Medical Care Services, which include professional and hospital services and Medical Care Commodities, such as drugs, medical equipment, and supplies. Based on these costs, the CPI then determines what households spend out of pocket, on average, for these goods, including health care premiums taken out of your paycheck.
While multiple states have approved large premium increases, Connecticut has kept insurance companies in check in this regard, requiring explanations for jumps over 10 percent. Other states have allowed providers to raise premiums more than 30 percent over this period and no plan is exempt. Affordable Care Act insurance purchased through a health care exchange and employer-sponsored plans both saw similar patterns.
Additionally, researchers estimated that health insurance premiums will continue to increase at a five percent rate per year over the next decade and will eventually outpace income by two percent.
Concerned about why your health insurance premiums and copays went up this year? Speak with Ion Insurance to discuss your plan and explore the other available options. Give us a call today at 203.439.2815.
