For months, we’ve listened to legislators decry soaring costs under the Affordable Care Act but, it turns out, individuals who buy their own coverage are not alone. A new study shows that rates are rising for employers, too.
According to The New Haven Register, United Benefit Advisors calculated a 24 percent increase this year in Connecticut renewal rates for employer-based health coverage.
That’s a lot of money, multiplied by the number of employees a company has – and it will probably cost employees, too, as management looks for cuts in other benefits, including raises, to make up the difference.
“The drivers of increasing rates continue to be rising medical and pharmaceutical costs and the increased utilization of those services,” stated Katharine Wade, Connecticut insurance commissioner.
That’s the Catch-22. More people are using more services because they have coverage and therefore they can afford to seek out medical help when they need it.
Certainly, in a civilized society, we want people to be able to get that help. But in the long run, we can’t allow these burdensome costs to hurt local businesses or local families.
Instead, we need innovation. We need leaders who are willing to experiment with new paths to healthcare, to look at programs that are successful - including those in other countries - without regard to ideological labels, and to scrutinize corporate profits in the drug industry, even as we support innovation.
Finally, we must be willing to recognize that part of the success of such actions has to be cost control.