Whether it’s a Medicare Part D drug plan or a privately purchased health plan, Americans consistently pay more than necessary for insurance. To make matters worse, they may also select plans whose deductibles and copayments are more expensive than competing plans in their local markets. A few data points:
Healthcare costs made up a startling 17% of the US gross domestic product in 20131, and these costs are estimated to increase to twenty percent by 2021.2
Household payments made up twenty-eight percent of national health expenditures in 2013. The trend toward higher deductibles and other out-of-pocket costs is accelerating throughout the health insurance industry. Without help identifying opportunities for savings on out-of-pocket costs as well as premiums, Americans may see an increasing portion of their earnings consumed by these expenses.
In 2014 HealthPocket analyzed Obamacare health plan data for the Associated Press and found that the average annual premium was $5,558 for a 50-year-old and $8,345 for a 60-year-old.
When comparing the pre-reform to post-reform markets for individually purchased health insurance, HealthPocket found that the average premium in 2014 for a 23-year-old woman was up about 44.9% from 2013, while men of the same age had a 79.2% increase (Forbes).
A 2012 Health Affairs study found that with Medicare Part D plans, one in five seniors pays $500 a year more than necessary to meet their medication needs; only 5 percent select the cheapest plan.
A HealthPocket study found that the average coinsurance fee for inpatient hospital services was 27% for bronze Obamacare plans (Wall Street Journal). Moreover, HealthPocket found that the average deductible for an individual bronze plan was $5,181 in 2015 (The Huffington Post, CNBC, Wall Street Journal) and $5,081 in 2014 (Forbes, New York Times, Wall Street Journal, CBS News).
USA Today quoted the findings of a HealthPocket study that copayments and coinsurance fees for drugs increased an average of 34% in 2014. In addition, the Wall Street Journal quoted HealthPocket’s research that more than half of 2014 bronze plans required patients to pay 30% of doctor’s fees.
HealthPocket provides unbiased information on premiums and out-of-pocket costs so consumers can shop wiser for health insurance and pay less on health care.
Updated July 17, 2015
1 CMS Historical Health Expenditure Data2 See Report: Health Spending Will Climb To Nearly One-Fifth Of GDP, June 20123 CMS Historical Health Expenditure Data4 See AHIP Report: Health Savings Accounts and Account-Based Health Plans: Research Highlights, July 2012
HealthPocket is a free information source designed to help consumers find medical coverage. Whether you are looking for Medicare, Medicaid or an individual health insurance plan, we will help you find the right healthcare option and save on your out of pocket healthcare costs. We receive our data from government, non-profit and private sources, and you should confirm key provisions of your coverage with your selected health plan. If you select a plan presented on our site, you will be directed (via a click or a call) to one of our partners who can help you with your application. Our website is not a health insurance agency and not affiliated with and does not represent or endorse any health plan.