The increase in employer-sponsored health plan premiums, however, goes largely unnoticed in the Consumer Price Index (CPI), as the CPI only takes into account out-of-pocket costs. For example, say an individual pays $20 for a primary care physician. Next year's annual enrollment period comes along and their same insurance plan costs additional $100 in monthly premiums, while their primary care physician's visit remains $20. The $100 increase in monthly premiums will not be reflected in the inflation rate, as calculated by the CPI because out-of-pocket costs only consider the amount paid for the service.
Research shows that the surge in prices is not due to higher utilization of healthcare services, but rather the consolidation of commercial insurers and providers, which are dictating prices through restrictive contracts.
To counter this consolidation, consumers must consider consolidate their communities and negotiate better prices through state exchanges. By providing citizens with incentives and funding through exchanges, state governments can shake up the status quo and bring down prices for consumers. It is important to shift the focus from overall spending to strategies designed for specific patient populations.
Lowering healthcare costs and improving care for all will require education and advocacy. States can help their economies by providing their citizens with disposable income through state exchanges, but only if the public can be convinced to change their attitudes towards health insurance. The first step is to raise awareness of the better options available through state exchanges, compared to traditional employer-sponsored plans.
