Health-Care Costs Expected to Soar Over Next Decade

This article discusses some of the pending healthcare cost rises. From an est. $1.9 Trillion in 2005 to $3.6 Trillion in 2014.

I want to look at the per person costs for healthcare. For 2005, I will figure on a Population of 290 Million. For 2014, I will use 310 Million.

Using the numbers above, our health care costs average $6,552 per person in 2005, rising to $11,613 in 2014.

If we consider insurance as a shared risk pool, it would seem to me that for a $6552 a year everyone should should get into a health insurance plan. I will even give up $552 a year for as a deductible and say $6000 a year. For Elaine and myself, a mere $12,000 a year will cover us for healthcare; rising to $22000 a year in 2014. (I am going to a $613 deductible in 2014) .

Of course, this insurance pool needs to include EVERYONE, from newborn babe to deathbed pensioner. If we allow opt-in/opt-out options, then many sub-30 people will opt-out because “We are in the Pink of Health!” And a family with 8 kids and 2 parents will face an annual insurance bill of $60,000 with a $5520 deductible. Somehow, I don’t think that will be economically viable from the family’s point of view.

My numbers are a bit higher than the article’s. I think I am assuming a lower population number, but our costs per person are close. The upshot would appear to be that while a wage-earning individual faces a reasonable average payment, the gross family payments account equal or exceed the poverty level for a family of 3, or greater. (The single Poverty rate is greater than the $6,552 for a single healthcare share. The family of 2 Poverty rate is just just less than the $13,104 healthcare rate for two.) Something seems askew when the poverty rate doesn’t include health insurance costs.