Health care coverage costs are growing for employers and employees, but the private sector is feeling the pain a lot more than is the public one, as verified by a Statistical Brief from the Agency for Healthcare Research & Quality (AHRQ Brief). Based on data from 2012, largely from the MEPS survey, the brief gives a good sense of just how much health care coverage costs. In 2012 there were about 130.4 civilian employees, public and private, and 113 million or 87% worked where the employer-provided access to health insurance. Of these, 34 million enrolled in civilian coverage, 12.4 million in single plus one coverage and 21.6 in family coverage. Average public sector premiums were $6278 for single, $11,642 for employee plus one and $16,301 for family coverage; while in the private sector the corresponding amounts were $5,384 for single, $10,621 for employee plus one and $15,473 for family. The higher public cost reflects a typically much richer benefit design, and while the premiums are higher, public employees almost always pay a much lower share of the premium and have lower cost-sharing amounts. For example, while public employees contributed only $713 for single coverage, private ones paid $1,118; and for family coverage, public workers chipped in $3,088 while private employees paid $4,236. Eyeball math would suggest that public employees were contributing about 11% of total single premium and 19% of the family cost while private ones paid almost 21% of the total cost for single coverage and 27% for family. Considering that public employees also get more cash compensation for the same work and have far, far richer retirement benefits, the difference in health costs is disgraceful. There is no excuse at all for allowing public workers to be better compensated in any respect than the average private sector employee, whose taxes are paying for the public employees, doing similar work.
✅ Subscribe via Email
About this Blog
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at [email protected].
Healthy Skeptic Podcast
This is an outstanding report on total global drug spending and trends, with projections out to 2025. It helps you understand this important area of health care, which does much...
June 1, 2021
MedPAC 2019 Report to Congress
June 18, 2019
IBM ending a huge bust in its health care efforts, selling its Watson health care assets to a PE firm. IBM spent a fortune building this and claimed it would...
January 21, 2022
More lunacy, kind of ironic for a mental health company, as Lyra Health raises a fresh $235 million in capital at over a $5 billion valuation. Just gonna say the...
January 20, 2022
More froth in the capital markets as R1 RCM pays $4.1 billion for CloudMed. R1 RCM helps health care providers with billing and other practice management software and services and...
January 12, 2022
Access ACO Care Management Chronic Disease Comparative Effectiveness Consumer Directed Health Consumers Devices Disease Management Drugs EHRs Elder Care End-of-Life Care FDA Financings Genomics Government Health Care Costs Health Care Quality Health Care Reform Health Insurance Health Insurance Exchange HIT HomeCare Hospital Hospital Readmissions Legislation M&A Malpractice Meaningful Use Medicaid Medical Care Medicare Medicare Advantage Mobile Pay For Performance Pharmaceutical Physicians Providers Regulation Repealing Reform Telehealth Telemedicine Wellness and Prevention Workplace