A short paper, "Hidden Costs of Health Care," released by Kathleen Sebelius and the Department of HHS last week, cherry picks the data to make a case that "Americans are spending more than ever on their monthly premiums while simultaneously being forced to pay higher out-of-pocket costs as a result of rising deductibles, copayments, and other cost sharing mechanisms." It goes on to complain that out-of-pocket costs, including premiums, rose by 30% from 2001 to 2006. Yet, elsewhere Mr. Obama frequently claims that the cost of employer-sponsored coverage rose 100% in the same time frame, so employees would seem to be getting a good deal.
Sebelius' report also says, "Seventeen percent of people with employer-based coverage have high out-of-pocket burdens (defined as out-of-pocket costs that consume 10 percent or more of a family's total income)." Of course, she forgets to mention that people on Medicare pay on average of 14% of their incomes on out-of-pocket costs, so a "public option" might not solve this particular problem. Continue reading Hidden Costs?