Schwitzer health news blog

Health costs shifting to employees

A Star Tribune story shows how misleading it can be to hear that health care cost increases have slowed down.

That's happened in Minnesota, down to the lowest levels in seven years, according to a state study released this week.

But only health insurance companies seem to be getting relief, not consumers.
Because while expenses paid by Minnesota's health insurers rose 7.4 percent in 2004, consumer health care costs grew 15.3 percent last year.

"Out-of-pocket expenses for the average Minnesotan are becoming unaffordable," Julie Schnell, state council president of the Service Employees International Union, told the newspaper. "What we have is employers shifting the costs to employees," she said. "That is not the answer to reform, and that is not the answer to reducing costs in health care."