Duane Tron re: cost of healthcare increase for the "average family" this year

Duane Tron to John Curry, May 15, 2008
Subject: Re: How much will the cost of healthcare increase for the "average family this year?"

John,

Amazing? They indicate that in 2007 a family plan for four cost $14,500.00 and yet we are paying $10,200.00 for a family of two in 2008. Granted they are going to say it is due to our older age! That is a bunch of baloney as I know some of the most expensive medical bills are incurred by families with children. I had my tonsils removed as a child. That was paid for by my father's health insurance. I fell on a milk bottle that exploded and had surgery on my chin, mouth, and face. Insurance. I was accidentally pushed through a plate glass door in high school while horsing around and that was paid for by insurance (big bucks). I was hospitalized with bronchial pneumonia and that was paid for by insurance. I broke my nose twice and broke ribs. That was paid for by insurance! I suffered two ingrown toenails. Yep! Paid for by insurance. Wound up with blood poisoning in my right leg. You guessed! Paid for by insurance. Played in a couple of intramural softball leagues between the ages of 25 and 40. Tore my Achilles in my right ankle, blew out a bicep, suffered a concussion, and separated a shoulder. All paid for by insurance! You know back in the days when insurance costs due to younger age are lower than older age.

Let's see in 1994 underwent colon rectal surgery due to job related stress. In 1985 spent time in the hospital due to smoke inhalation and heat stroke from fighting a house fire. In 1995 fell on the ice and destroyed my right hand, wrist, elbow and shoulder. Total cost at the age of 51 from a fall? A cool $125,000.00. You know in that age range when insurance costs are much lower than for us old people! John, age has nothing to do with insurance costs as a whole! During the past 43 years my wife has been hospitalized twice. Once to have our daughter and once for a hysterectomy. That's the extent of her hospital expenses during 43 years of marriage.

The insurance company has spent much less on me since I retired 12 years ago than at any time in my entire life. I have been hospitalized twice. Once for three days and once for two days. The only cost that has increased for my care since retirement is medication and that has only increased about 20% overall from what it had been. I am actually doing more to take care of myself, eating better, getting more exercise, monitoring my blood pressure and other areas of concern now than at any time in my life! I rarely drink any alcohol (an occasional glass of beer or wine with a meal)! I don't smoke cigarettes and haven't for over 35 years. I have cut out almost all fried foods. I don't use sodium except for what's in the food being prepared. I drink skimmed milk, use Eggbeaters, and have reduced my bad cholesterol down to less than 40 count total. I have cut my intake of red meats and increased my diet of vegetables, nuts and fruits. Do we receive any discount or reduction for healthy lifestyles? NO!

Most of these costs are the same crap we're getting from the oil and gas companies and others intent on destroying this country and our way of life. They invent a lot of bullshit and pass the costs on to consumers alleging the need for the increases due to increased costs. The increased costs aren't being driven by consumers but are being driven by greedy people who want to make as much money as they can while spending as little as they can! And they are doing this at the expense of average Americans and for their personal gain.

I studied statistics at the graduate level and am very good with using them. I know how to use statistics and make them say anything I want them to say. I know how to work the numbers to make any situation look bleak. This is what the health insurance companies, oil companies, pharmaceutical companies and all of the rest have been doing for the past 20 years. They just spread the numbers out to say what they want and then they lie, and lie, and lie about what's happening. Note, they always point to statistics, supply and demand, the markets, shortages, price increases, etc. As I said, most of the huge price increases are linked to creating excessive profits by using false and bogus statistics. My take for what it's worth!

Duane

From John Curry, May 15, 2008
Subject: How much will the cost of healthcare increase for the "average family this year?"

Kaiser Daily Health Policy Report

Health Care Marketplace | Average 2008 Employee Out-of-Pocket Costs for Family Health Care To Increase 10.5%, According to Milliman Index [May 15, 2008] The cost of health care for the average U.S. family with employer-sponsored health coverage will increase 7.6% this year, due in part to rising prescription drug prices, according to a Milliman study released on Wednesday, Dow Jones reports. The fifth annual Milliman Medical Index analyzed historical claims data and trends in provider contracting and examined the drivers and components of medical spending. According to the study, the cost of medical services, including premiums, will increase by $1,109, from $14,500 in 2007 to $15,609 in 2008 for an average family of four enrolled in an employer-sponsored PPO.

The study also found that the cost of pharmacy services is expected to increase by 10.6% to $2,302, compared with single-digit increases for physician services, inpatient and outpatient care (Knight, Dow Jones, 5/14). Drug spending has slowed the past two years, according to the study. However, this year's increase is a trend that Milliman believes will continue, the Wall Street Journal reports (Fuhrmans, "Health Blog," Wall Street Journal, 5/14).

According to the study, employers are expected to pass on more of the cost to their employees. Employers will shift around 10.5% more of the cost to workers through higher premiums and out-of-pocket costs, such as deductibles, copayments and coinsurance, the study found. Of the total $15,609 cost, employers will pay $9,442, while employees will spend $3,492 on premiums and $2,675 in out-of-pocket costs (Dow Jones, 5/14). In 2008, employers will pay roughly 60% of medical costs, while employees will pay 40% (Johnson, CQ HealthBeat, 5/14).

Comments According to study co-author Lorraine Mayne, a Milliman principal and consulting actuary, this is the second consecutive year employees' share of spending will increase by double digits (Dow Jones, 5/14). She added that the report is "likely to increase pressure on the next presidential administration to address health care costs" (Fuhrmans, "Health Blog," Wall Street Journal, 5/14).

Gary Brace, Milliman principal and study co-author, said, "This is a trend we expect will continue for several years, as fewer high-volume drug patents expire," adding, "For many Americans, this rate of increase is exceeded only by fuel and certain food costs" (Dow Jones, 5/14). According to CQ HealthBeat, "The study adds to the existing gloom and doom related to medical costs as projections by federal analysts show that health spending in the United States will double by 2017" (CQ HealthBeat, 5/14).

The study's findings are available online.