Out-of-pocket costs continue to spike for privately insured

The amount of out-of-pocket expenses for hospital visits paid by people with private insurance grew 37 percent from 2009 to 2013, a new study found (Source: “Even With Private Insurance, Out-of-Pocket Costs for Hospital Visits Shot Up 37%,” Bloomberg News, June 27, 2016).

The study, conducted by the University of Michigan and published this week in JAMA Internal Medicine, adds to a growing body of evidence that suggests employers are using high-deductible plans to keep premium costs down.

The study found that out-of-pocket costs increased 6.5 percent a year, on average, as overall health spending grew 2.9 percent annually. The average out-of-pocket cost of hospitalization was more than $1,000 over the five-year period, largely because of charges patients might not be aware of. 

During the study period, deductibles grew 86 percent and coinsurance costs rose 33 percent. Co-payment costs fell, but so did the number of insurance plans that charged them. Out-of-pocket costs exceeded the annual growth of insurance premiums—the payments that companies and workers make to buy health insurance—which increased 5.1 percent a year.