The main health-industry lobby group, the American Health Insurance Plans reported that health insurance contributions by 8.8% in 2004-2005 increased. Lobby groups claim this is good news, because the actual rate of premium growth slowing further from rates of more than 13% in 2002. Improved health premiums reported are likely due to the increased use of physician and hospital.
Accounting firm, PriceWaterhouse Coopers, reported that only 14% increase administrative or marketing costs or higher insurance premiums, profits should be done. According to the Kaiser Family Foundation, purchased a health plan, on average, by the company in 2005 approached $ 11,000. Average annual costs for employees is around $ 3.500 plus deductibles and co-payments.
Employers are currently shifting more and more of the health care costs to their employees. Studies show that employers decreased health care spending by 1.3%, while employees increased spending by 5.5%. “What we’re aware of is that health care costs,” says Judy Feder, PhD, dean of the Public Policy Institute at Georgetown University, “even when they slow down, are still outpacing peoples’ income and ability to pay.”
The trend of increasing costs of health care does not seem to be slowing down. With baby boomers now into their sixties, these costs will certainly continue to rise. Health care costs are taking a larger chunk out of everyone’s budget.
Prescription drugs price increases are outpacing the growing medical premiums by almost two-fold. Controlling drug costs is one of the simplest ways to lower overall health care spending. Using generics as often as possible, utilizing less expensive over the counter medication, and shopping around for lower prices are three quick and easy ways to lower these costs. Even small savings, done over and over, will soon add up to a significant reduction in your expenses at the pharmacy.