Costs eat big holes in employer health-insurance net: Avg. out-of-pocket costs jumped 34% 2004-07

from MarketWatch:



Costs eat big holes in employer health-insurance net
Workers' average out-of-pocket costs jumped 34% from 2004 to 2007

By Kristen Gerencher, MarketWatch


SAN FRANCISCO (MarketWatch) -- Americans with job-based health insurance saw their protection from higher out-of-pocket costs erode between 2004 and 2007, especially those who were sick and of modest means, according to a new study.

The majority of people with health insurance, about 160 million Americans, receive it through their jobs.

"American families with employer-based coverage were worse off in 2007 than they were in 2004," said Jon Gabel, lead author of the study that was published in a June 2 Health Affairs Web exclusive. "This is during a period of time when the economy was expanding."

The authors conclude that a growing number of people are underinsured, a term that refers only to what they pay out of pocket for medical services. Health-care affordability, which includes out-of-pocket costs plus employees' premium contributions, also has taken a big hit.

Comparing expected health spending among different types of health plans, financial protection was greatest for those in health maintenance organizations (HMOs), the study found. Of five chronic conditions surveyed, patients with breast cancer suffered the highest out-of-pocket costs.

Workers faced an annual average of $729 in medical-services costs in 2007, including deductibles and other forms of cost-sharing such as co-payments and co-insurance. That's up 34% from 2004, when the average out-of-pocket burden for those with employer coverage was $545. .........(more)

The complete piece is at: http://www.marketwatch.com/story/out-of-pocket-health-costs-up-34-in-3-years

They save money at first but eventually cost everyone more. Employees, especially those with chronic conditions, put off routine care becasue they can't afford it. Sooner or later that catches up with them and there are more ER visits and hospital admissions with longer stays. The employee pays more, but does hit the deductible (though many are then stuck with an 80/20 payment), premiums go up and employers lose more because absenteeism also increases.

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