Image: Paolo Camera under CC 3.0
2009 had the American economy in the throes of recession. Inflation was very low, while the Federal Reserve cut the interest rate to almost zero. So why did the cost of health insurance plans continue to rise?
To be exact, United Benefit Advisors found that health insurance rates increased by an average of 7.3% for employers. That’s almost three times the inflation in general consumer prices.
Insurers tend to blame an increase in medical expenses. Meanwhile, companies are using consumer-directed health plans to pass more of the cost of group health insurance coverage onto their employees.