Healthcare Financial News

Almost three-quarters of Americans favor including a public insurance plan in healthcare reform legislation, including 50 percent of those who identify themselves as Republicans, according to a New York Times/CBS News poll of 895 adults. Half of all respondents said the government would do a better job at providing medical coverage than private insurance companies currently do, and 59 percent thought government was better equipped to hold down health costs. But at the same time, people expressed concern that if the government guaranteed health insurance for everyone, their current health care would suffer, with 68 percent predicting that access to medical tests and treatment would be more restricted than it is now. Still, nearly 60 percent said they would be willing to pay higher taxes to ensure universal coverage for Americans.

Eighty-five percent of those polled supported healthcare reform, with an equal number stating that rising health costs were a serious economic problem. Respondents had little issue with the quality of healthcare, as 77 percent claimed they were satisfied with their own healthcare quality. The majority of respondents said they believed that the Democrats would do a better job overhauling the healthcare system than would Republicans.

Out-of-pocket healthcare costs for a person with employer-based coverage rose 30 percent from an average of $2,827 in 2001 to $3,744 in 2006 (including premiums), according to a report released yesterday by the U.S. Department of Health & Human Services. Hidden Costs of Health Care: Why Americans are Paying More but Getting Less documents the rising cost of deductibles, copayments and out-of-pocket expenses. Other report findings include the following:

• A person with employer-based coverage paid an average of $1,522 on health care (not including premiums) in 2006, compared with $1,260 in 2001. 
• Employer-sponsored health insurance premiums have nearly doubled since 2000, a rate three times faster than wages. In 2008, the average premium for a family plan purchased through an employer was $12,680.
• For preferred provider organization plans purchased through an employer, the average family deductible increased 30 percent in just two years, from $1,034 to $1,344. This effect is more pronounced for small firms, where PPO deductibles increased from $1,439 to $2,367 — a rise of 64 percent.
• In 2004, one in five people with health insurance through an employer had a copayment of more than $25, but by 2008 the number jumped to one in three.