This headline in the NY Times caught my eye:
The article leads with:
The Obama administration on Friday unveiled data showing that many Americans with health insurance bought under the Affordable Care Act could face substantial price increases next year — in some cases as much as 20 percent.
Now, those are exchange premiums so they don’t apply to me.
Still, the headline was shocking enough to make me take a serious look at the premiums that I pay.
What I discovered is very interesting …
First, let me declare that I have no beefs with either my employer – whose plans are, in my opinion, quite generous …. nor with my insurance carrier who has a broad network of great doctors & hospitals, offers reasonable coverage, and stepped up big during my wife’s successful cancer treatments this year.
That said, the summary chart I developed is quite revealing.
I’ve been on the same carrier’s plan for the past several years, so all comparisons are apples-to-apples … except for mandated coverages mandated by ACA (none of which I wanted).
A couple things to note …
First, the total annual policy premium – the sum of my contributions and my employers – increased by over $4,000 over the past 5 years …. That’s a 46% increase … an average annualized increase of 9% over the past 5 years.
Geez, what happened to the $2,500 premium decrease that the President promised?
Second, note that my employee share of the bill has increased by 5% … from 25% to 30%.
Again, I don’t fault my employer – it has to keep its costs contained.
But, the arithmetic is interesting …
Over the past 5 years – when total premiums were increasing by 9% — my premiums have gone up 17% annually.
The 2015 premiums are a case in point: the total premium is going up 9% … my share of the premium is going up 23%.
At least I’m getting good coverage with a great network … and my employer is still paying 70%.
That’s enough to keep a guy working.