New York Times Examines Out-of-Pocket Health Care Costs

The New York Times on Sunday examined whether U.S. residents should have to pay increased out-of-pocket health care costs through higher premiums, deductibles and copayments, an issue that has become "central" in labor negotiations, the congressional debate on Medicare and state discussions on Medicaid and CHIP program reforms. Many economists maintain that U.S. health care costs will continue to increase unless residents pay more out of pocket for the medical services that they use. Kate Sullivan, director of health policy at the U.S. Chamber of Commerce said, "When consumers don't have to pay any regard to price, they overconsume." However, others maintain that such traditional market principles "do not apply to health care" because "most people believe good health is priceless," the Times reports. Princeton University Health Economist Uwe Reinhardt said, "If you make people pay more for their health care, all you are doing is rationing health care according to income ... those without means would have to do without." According to a recent Kaiser Family Foundation and Health Research and Educational Trust study, out-of-pocket health care costs have increased for individuals with employer-sponsored health insurance since 2000; employees' share of the average annual cost for health insurance premiums for family coverage has increased by about 50% since 2000, and deductibles and copayments also have increased. Foundation President Drew Altman said, "The public is more worried about their rising health care costs than they are about anything else" (Rosenbaum, New York Times, 10/26).