Increase in Out-of-Pocket Costs Isn’t Just a FEHB Phenomenon

Increases in out-of-pocket expenses, a new trend in health insurance that has irked FEHB participants, are widespread in healthcare programs, according to a report by the Employee Benefit Research Institute.

Federal employee organizations also draw attention to the rising fees and taxes in that program, even though FEHB premium increases have historically been in line with those of healthcare programs provided by state governments and other significant employers.

They have alleged that the OPM has occasionally permitted plans to transfer costs to the out-of-pocket side, leading to falsely reduced premiums—which receive the most attention.

However, according to the EBRI report, there is a general trend toward rising out-of-pocket expenses in the healthcare industry, and “people with health coverage through their work generally pay more out-of-pocket for healthcare services than they did in the past.”

For instance, more employees have deductibles as a part of their health plans. Additionally, the typical deductible has been rising among people who have one. According to the report, the average deductible grew between 2002 and 2020 from $650 to $1,945 for those with employee-only coverage and from $1,395 to $3,722 for those with family coverage.

“Copayments have also been rising. An office visit’s typical copayment grew from $22.40 in 2002 to $26.92 in 2020. Office visit coinsurance rates climbed relatively slowly, but since coinsurance requires plan participants to cover a portion of the cost, out-of-pocket coinsurance expenses rise in tandem with office visit prices, it added.

Despite these increases, the percentage of adults with unpaid medical bills has remained relatively steady since 2015, according to the research. However, it continued: “It is very likely that as inflation rises, health care expenses would follow suit. Before the prevalence of past-due medical bills increases, it might only be a matter of time.”

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After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

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