Why is it when I get my annual 3 to 4 % raise, it's taken away by the rising costs of my health insurance??!

Question

I'm so fed up with it all! I am thankfully healthy enough not to have use my medical insurance very much, but I can't help but feel I'm getting screwed! I can't get ahead.

Answer 1

Welcome to the club.

Answer 2

Unfortunately medical insurance premiums are going up at a much higher rate than 3-4% inflation rate. Medical premiums have been going up more like 15-19% annually for a number of years.

The only way you can reduce the bite that medical insurance takes is to modifyyour health insurance plan so that you are participating to a greater degree for the cost of your health care.

If your healthy and you don't use your health insurance why pay for a "Cadillac" plan that pays for "everything"?

Check with your employer to see if you can increase you deductibles and copays. Does your employer offer a HSA (Health Savings Account)? This is a great plan that is ideally suited from somebody that's healthy.

You need to explore what options are available to you as the cost of medical insurance will likely outpace your cost of living raise year after year.

Answer 3

WOW, your health insurance is only rising at 3%- 4% a year? The cost to your company is rising at closer to 25% a year, so you're really lucky!!

Why are the company costs going up? Because more people are putting in claims. When claims costs go up, rates go up. Pretty simple.

In 2005, the health care industry generated $7,000 in medical bills for each man, woman, and child in the US. Ouch.