Feeling Squeezed by Rising Health Care Costs

Republicans like to point to the burgeoning stock market and say that the American economy is doing fine, but middle and lower class Americans know painfully well that the current financial "recovery" is benefiting primarily the wealthy among us. Wages have been flat while living expenses have been going up, so ordinary people are feeling a financial squeeze. A big part of that squeeze comes from health care costs.

The excellent blog Ohio Health Policy Review posted three items yesterday illustrating the financial squeeze from rising health care costs to consumers. First, the standard Medicare Part B monthly premium will rise by $2.90, to $96.40 per month, for the next next year. This is a smaller increase than in recent years, but the monthly premium was just $45.50 as recently as 2000.

Second, many of the prescription drugs plans offered to Ohioans under the new Medicare Part D program will be going up next year. Nationally, the average premium under Part D will rise 8.7%.

Third, Business First of Columbus reports that insurers will be raising premiums charged to employers for employee health plans by 9% to 11% next year. Employers are expected to negotiate an actual increase of about 6% and pass along increased costs to employees in the form of higher deductibles and other charges such as co-pays.

This is a big part of the reason that record-breaking days on Wall Street aren't met with a lot of cheering from ordinary folks on Main Street.