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New report: Employer health insurance premiums increased 62 percent from 2003 to 2011
Date:12/11/2012

ven modestly would make a significant difference for families and businesses. For example, reducing the annual growth rate by one percentage point would lead to $2,029 in savings for families by 2020. Slowing annual cost growth by 1.5 percent would yield savings of $2,986 per family.

The report's authors note that the Affordable Care Act lays the groundwork for lowering cost growth and improving and expanding insurance coverage. The law's provisions put pressure on private insurance plans to lower their overhead and focus on the underlying costs of health care, setting standards for how much of each premium dollar must go to health care, as opposed to administrative costs, with insurers who don't meet the new standard paying rebates to policyholders. Other reforms provide private insurers with a platform for further cost-reduction efforts. The authors conclude, however, that more will need to be done to confront the forces driving up the cost of care in private insurance markets.

"The Affordable Care Act has put the United States on a path toward a high performing health care system, where everyone has access to high-quality, affordable, and secure health care," said Commonwealth Fund president Karen Davis. "As we implement the law's reforms, it will be crucial to stabilize cost growth by holding care systems and private insurers accountable for better outcomes and lower costs."


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Contact: Mary Mahon
mm@cmwf.org
212-606-3853
Commonwealth Fund
Source:Eurekalert

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