That’s one problem with relying on employment for health benefits. The employer can change it any time it wants to save money, which (evidently) is exactly what they’re doing. Government monopsony would fix that. In fact, I sometimes wonder if that’s how we’ll get UHC: employers balk at costs, cut benefits to reduce costs per employee (shareholders love that), government has to step in and establish something resembling Medicare for All.
I’ll provide a few details. Disney is dropping health coverage for working spouses with their own access to healthcare. Starbucks is ending coverage for GLP-1. Benefit costs are expected to rise more than 8% for employers next year. They’re reacting by reducing coverage, narrowing networks, and passing more costs on to employees.
Yes, inflation in health care cost translates to rising insurance rates and all payers must adjust.
Why are health care costs rising faster than inflation? This problem needs to be addressed. Otherwise, rising costs will crew into everything else in every budget.
Most think healthcare is a first priority. Increases in insurance cost usually comes out of savings unless it is covered by rising income.