Out of Control Health Care Costs

NCPAFrom the NCPA:

Telling most working families that health care costs keep rising every year is like saying there are clouds in the sky. It’s simply an accepted fact. Yet when we delve into the details of why and how health care costs are climbing — often well beyond the ability of families to keep pace — the picture becomes even more troubling. It provides yet another reason to pursue meaningful reforms, says the Fiscal Times.

The rate of increase is unsustainable.

  • A recent survey by the Kaiser Family Foundation and Health Research Educational Trust reported “modest” increases in insurance premiums — 5 percent for individuals and 4 percent for families.
  • In the most recent year, that translates into an average $5,884 annual premium for singles and $16,351 for families.
  • While single-digit hikes rarely cause alarm, even at 5 percent premiums double over about 14 years.

The total cost is unprecedented relative to wage income.

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