Health care insurance in the future

by Michele Postler, Wednesday, January 9, 2013

Employer costs are to increase in 2013

The recession is still in full swing and the interest rates are as low as they can go, so it is no surprise that employer provided health care costs will increase. With the new Obamacare plan if you are not receiving coverage from your employer you can purchase your own coverage, which may be a booming trend in the future. It’s not easy to tell how much the cost difference between getting coverage from work and venturing out on your own to get the coverage is cheaper or more expense. But one thing it is is more complicated. There are more choices now for people and if they are not happy with the coverage they are receiving from their employer it may be in their best interest to start researching other options for how much is health insurance.

The increase in the average family premium is up 30 percent from 2007 but only 4 percent from 2011. These numbers reflect the recession and the steps insurance companies are taking to not increase the premiums above what people are able to pay. This can not last though. With the types of packages employers are paying for, the employees are lumped together so the rate is not specifically reflected for each individual employee. As the prices increase, this may be the future of employer provided health insurance, non existent.

One of the new rules in the health care reform is that it has eliminated any coverage that has a deductible over $2000 for a single policy. Meaning that if you have maxed out the deductible on your plan to reduce your payment costs, this is lowest your premium will be. If the price of the plan rises in the future you may not be able to just increase your deductible to keep the payments low. This may force some employees of small businesses to purchase the government approved coverage which may increase their costs on a monthly or annual basis anyways.

Employers are trying to reduce the ever increasing cost of health care insurance provided to their employees by increasing the deductible that is to be paid in the event of a health care need which as before mentioned has a cap at $2000, this increase is up from 10 percent in 2006 to 34 percent in 2012. Along with the increased deductible they are also providing access to Health Savings Accounts, which provides employees access to a tax free account to save for future health care costs.

The new Patient Protection and Affordable Care Act will be in effect in 2013 and along with it comes many changes to the health care system in the U.S. Not only has the deductible cap been placed but they have written in stricter rules to define a full time employee, and included thousands of man hours to tend to administration issues which will undoubtedly increase the premiums costs of employers.

The new health care reform had good intentions but it seems to have become the Frankenstein of health care in the U.S. The costs are highly becoming out of control which is ironic as this was to be the solution to expensive health care costs in the United States.