Average cost of a family health insurance plan now nearly $27,000

According to a new report by KRQE, the average cost of a family insurance plan (employer sponsored) is now $27,000. According to the story, “Family premiums are up 6 percent, or $1,408, from last year, more than double the rate of inflation and similar to the 7 percent increase recorded in each of the previous two years. On average, workers contributed $6,850 annually to the cost of family coverage, with employers paying the rest.”

There are numerous problems in health care both here in New Mexico and also federal health policy. Rising costs are driven by factors that include:

• the misguided third party payer system (why do employers get a tax break to buy health insurance for their employees while individuals don’t)? This drives up costs and takes financial incentives away from individuals;
• growth in welfare programs like Medicare and Medicaid which shift costs to others and take money out of taxpayers (health care consumers) pockets;
• regulations including those imposed by ObamaCare;
• Medical malpractice;
• Strict professional licensing laws; and numerous other issues;
• While it is not a policy issue it is worth noting that the aging US population plays a role as well.

Stein’s law (Herb, not Ben) states that “Something that cannot go on forever will stop.” These health care cost increases are simply unaffordable. Dramatic reforms are necessary to restore the doctor/patient relationship which includes some form of direct financial relationship. New Mexico’s medical provider shortage is just the tip of the iceberg. There are massive issues in the federal policy as well that must be addressed to “bend the cost curve” of American health care.

Lest someone believe that the answer is outright government takeover of health care like Canada, wait times north of the border are a serious issue. One article even called a system of “haves and have nots.”