Premium Increases Slow, Out-of-Pocket Expenses Rise in 2015

A Kaiser Family Foundation survey found that while premiums have only risen about four percent in 2015 on average, deductibles have been rising faster than total health costs—and faster than wages. On average, deductibles have risen about seven times faster than wages, which have stayed relatively flat.

About half of all covered workers have a deductible of more than $1,000, while about one-fifth have deductibles of more than $2,000. While premiums have risen about 25 percent since 2010, deductibles have risen by about 65 percent. Plan sponsors are increasing cost-sharing for plan participants because of factors like rising overall health care costs and the looming Affordable Care Act “Cadillac Tax.”

Additionally, the rising cost of prescription drugs has made news headlines this year. Generic drugs are increasing in price for a number of reasons, including profit-driven price hikes by pharmaceutical manufacturers, manufacturing monopolies, shortages of raw materials and lack of regulation regarding drug prices in the U.S. Plan sponsors are coping with the rising prices of name brand drugs by adding price tiers to prescription plans, particularly tiers for specialty drugs.

About The Boon Group

The Boon Group® is a full service employee benefits company specializing in the design, implementation and administration of cost-effective fringe benefit plans for federal, state and local government contractors. Since 1982, The Boon Group has developed a partnership philosophy that expands beyond the products and services we offer. We stand with the employers and employees who, just like all who work at The Boon Group, are faced with the daunting task of navigating the U.S. healthcare system. Together, we can find a better way for all Americans to access healthcare. The Boon Group, Inc. is the parent holding company of The Boon Insurance Agency, Inc., Boon Administrative Services, Inc. (formerly named CEBA), Boon Insurance Management Services, L.P., Health & Welfare Benefit Systems, Inc. and Boon Investment Group, Inc. The Boon Group was formed to support and strengthen the position of these companies as a wholesaler of exclusive products and services. www.boongroup.com
This entry was posted in ACA, Affordable Care Act, employer-sponsored group health plans, health insurance and tagged , , , , . Bookmark the permalink.

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