A Bit More on the Cost of Health Insurance

A Vox article cites a report from the Center for American Progress that helps explain why many employees who get health insurance at work don’t like the Affordable Care Act and believe it’s causing the cost of health insurance to go up:

In recent years, the growth in overall health care costs has slowed dramatically. But for millions of Americans with employer-sponsored insurance…, this slowdown is illusory. From 2008 through 2013, the average annual growth rate of employees’ monthly premium contributions and out-of-pocket expenses, adjusted for inflation, was more than double that of average annual growth in real per-capita national health care spending, which was less than 2 percent per year. This growth has also outpaced employers’ costs of offering these benefits by more than 40 percent.

Employees experiencing higher health care costs tend to blame the Affordable Care Act, or ACA, even though the law largely leaves the employer-based system alone….The actual reason why employee and employer costs are increasing at different rates is because employers have, over time, shifted greater responsibility for health care expenses to their employees through higher deductibles, higher copayments, and higher coinsurance—a practice that began long before the passage of the ACA. Other employers pay smaller shares of their employees’ health care premiums….

In other words, almost everyone in the health care system is realizing savings, but employees’ costs are rising.

Or as Vox puts it, in still other words:

Your company’s health insurance costs are going down. But yours are going up.

This is in addition to many companies incorrectly telling their employees that the ACA is to blame for rising costs.