Cost of Health Care Premiums Spike in 2011

September 27, 2011

Employer group insurance premiums for family coverage grew 9% this year (triple the rate from 2010) and 8% for single coverage, according the 13th annual Employer Health Benefits survey conducted by Kaiser Family Foundation. Despite the increases, employers held the percentages workers paid toward premiums to about the same as they paid in 2010 (18% for single coverage and 28% for family coverage).

So what caused the sharp increases in the cost of health premiums this year? Since many have voiced concerns about the impact health care reform would have on costs, fingers will naturally point there first, but the study points out that it was not the main contributor. The research shows that provisions of the new health care law that were in effect only had about a 1.5 to 2 percent impact on the 9% increase. According KHN, “Many factors drive premium growth, the main one being actual spending on medical care, including jumps in prices charged by hospitals and doctors and growing use of expensive new drugs and technologies.”

Learn more about the results of this study in this article on Kaiser Health News. Download a summary or the full report.

Visit Extend Health — the nation’s largest private Medicare exchange.

One Response to “Cost of Health Care Premiums Spike in 2011”

  1. […] Cost of Health Care Premiums Spike in 2011 (extendhealth.wordpress.com) […]

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