30 September, 2017

Health Care Costs

Why is this not discussed more?  Health Care reform shouldn't be focused only on those who might lose coverage if Obamacare is reversed, but also on those who are suffering if Obamacare is not reversed.  Note the data below regarding health care premiums - shouldn't this negative financial impact also be part of this conversation?

PBS reports that out of pocket costs for consumers have risen and are expected to continue to rise due to the proliferation of high deductible plans. The Department of Health and Human Services also recently released a report that showed that the average individual health insurance premium rose from $2,784 in 2013 to $5,712 in 2017. That is an increase of 105% or $2,928. Average wages have not risen by $2,928 during that time period so the money consumers are paying for health care had to come from spending somewhere else. Indeed, this is why we think there has been broad based weakness in all kinds of retail spending lately. The average person has less than $1000 saved so we can almost be assured that increased spending on health care is being balanced by decreased spending somewhere else.

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