Deductibles for employer provided health insurance have increased 6 times faster than wages

The New York Times is reporting today that the cost of deductibles for employer provided health insurance has increased an average of 6 times greater than  wages during the past 5 years. According to a study by Kaiser, a health policy research group,

Four of five workers who receive their insurance through an employer now pay a deductible, in which they must pay some of their medical bills before their coverage starts, according to Kaiser.

Those workers have seen their deductibles climb from a yearly average of $900 in 2010 for an individual plan to more than $1,300 this year, while employees working for small businesses have an even higher average of $1,800 a year. One in five workers has a deductible of $2,000 or more.

This situation is ridiculous. It’s basically theft because few employees are going to be able to afford the deductible. They are being fleeced by the amount they contribute monthly without much hope of ever being able to afford the deductible. Since they cannot afford the deductible, they avoid seeking medical care until they are at death’s door.

This is why we need single-payer health insurance.

3 Responses to Deductibles for employer provided health insurance have increased 6 times faster than wages

  1. gblock says:

    Fred, your analysis is simplistic. It overlooks the fact that in most cases, the deductible wouldn’t be paid all at once. It would be paid over a period of months, during several office and lab visits that each cost well below the deductible. The only time that the deductible would be paid off all at once would be for something relatively expensive, like a hospitalization.

    Do these plans actually not cover *anything* until the deductible is met? Many health plans actually partially cover many medical expenses even before the deductible is met. Doesn’t Obamacare require this, or are some plans not required to follow those rules?

  2. Malisha says:

    This is part of the general overall drive toward neofeudalism. The more dependent the workforce gets, the more they can be controlled. Being so dependent that you cannot quit because you live actually hand-to-mouth makes you accept unacceptable conditions.

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