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The cost of health coverage through work jumped this year, in part because of inflation, according to a survey of U.S. employers. Later this fall, companies begin their annual coverage enrollment window for 2024, and health care experts say another price hike could be coming. The wider economy has felt those two pressures for more than a year, and now they are starting to affect health care costs, said Gary Claxton, a senior vice president with KFF. Fronstin said health care provider consolidation also can drive up care costs, which ultimately affects premiums. He also thinks the U.S. health care system — with its limited capacity to treat people — is still catching up on providing care that was delayed during the COVID-19 pandemic.
Persons: KFF, , , Paul Fronstin, Fronstin, Gary Claxton Organizations: Research Institute, Employer, Companies, KFF, Associated Press Health, Science Department, Howard Hughes Medical Institute’s Science, Educational Media Group, AP Locations: United States, paychecks
"You don't want to be shocked when you get to retirement and find this out, or discover that Medicare doesn't cover everything," Fronstin said. Representing an extreme case, a couple with high prescription drug expenses would need to have saved $383,000 to have a 90% chance of having enough to cover their health-care costs. Advantage Plan coverageThe second coverage scenario analyzed in the study involves a Medicare Advantage Plan, which delivers Parts A and B, and typically Part D, as well extras like dental and vision. Of Medicare's 64.5 million beneficiaries, 29.1 million are enrolled in Advantage Plans and that number is expected to continue growing. While many Advantage Plans have no premium, they do have their own deductibles, copays or coinsurance and out-of-pocket maximums that vary from plan to plan.
Hinterhaus Productions | Digitalvision | Getty ImagesIt's that time of year, when workers get to make some decisions about their employee benefits. Many companies are beginning to hold their annual open enrollment period, which is when employees can sign up for 2023 health insurance — as well as consider other benefits, if your employer offers them. Some may offer extras like supplemental life or disability insurance, pet insurance or help with education costs. "People tend to [review] their benefits very quickly," said Paul Fronstin, director of health benefits research at the Employee Benefit Research Institute. For 2023, the annual cap on HSA contributions is $3,850 for self-only coverage and $7,750 for family coverage.
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