Survey shows that health insurance is growing more expensive but also more restrictive

Health InsuranceA new survey released yesterday by Towers Watson, a leading professional service and consulting firm, and the National Business Group on Health, a trade organization, claims that health insurance is getting more expensive, but is also covering much less than it used to. The survey, which targeted several large companies throughout the U.S., shows that employees are paying more for their coverage this year than they have in the past. They are also subject to more restrictions on their insurance and health care options, with many benefits being cut by employers.

The survey notes that in 2012 the cost of employer sponsored health insurance rose by 9.3% to $2,764 a month. This is approximately 40% higher than it had been in 2007. Both employers and their workers are also paying more for coverage, with a cumulative increase of 5.9%. The survey also shows that high deductible health insurance plans are becoming more popular, corroborating the claims from other organizations.

Both Towers Watson and the National Business Group on Health claim that the coming health insurance exchanges will have significant influence on this trend. The two believe that the exchanges will help lower costs for both employers and workers throughout the U.S. This will not be seen until 2014, however, as that will be the time when the Affordable Care Act is fully enacted. Then again, the exchanges may never come to be if the U.S. Supreme Court declares the health care reform law as unconstitutional.

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