Health insurance costs strain family resources

April 02--While the number of people lacking health insurance in New York is at a historic low, costs have skyrocketed over the past decade to strain both workers and employers who sponsor their insurance.

A majority of New Yorkers, 55.8 percent, still got their coverage through their employers in 2016. A new report from the New York State Health Foundation reviewed how the rising cost of health care is being shouldered and shared.

Overall health care spending in the state is among the highest in the nation, and premiums for employer-sponsored family plans fall in line, ranking third behind only Alaska and Wyoming. The average premium for a family plan ($19,375 in 2016) increased 51 percent from 2008 through 2016, rising more than twice as fast as median income. The median household income in Otsego County is $49,689, according to the most recent government census.

Employers pay a substantial amount of the premiums for coverage, but most employees are required to contribute a portion of their income.

"The Affordable Care Act promised to stabilize premiums, but we haven't seen that happen," said Bob Carey, a broker at NBT-Mang Insurance Agency who works for the Otsego County Chamber of Commerce. When employers can't raise prices to cover increased insurance costs, they tend to pay less of the deductible, he said. "You see employees drop off of coverage because it becomes unaffordable to them."

Carey coordinates insurance for local businesses, and said that among the most common providers are Capital District Physicians' Health Plan, MVP Health Care of Schenectady, Excellus BlueCrossBlueShield and Aetna.

Katie DeThomas of Oneonta said that she delayed her marriage to stay on "Obamacare" when having her daughter in 2015. She said the hospital bill would have been $3,000 under her husband's family plan from Preferred Mutual in New Berlin.

"It's ironic, him working for an insurance company and having terrible insurance," she said.

The bi-weekly rate cut from his paycheck has grown, she said, but coverage is skimpy. Dental work over the past year has come with a $6,000 price tag, as her plan allots only $750 a year to dental care for the family of four.

The NYSHealth report also notes that deductibles have more than doubled between 2008 and 2016, with the average cost for a family growing from $1,524 to $3,099. Many more people are also paying deductibles -- only 47 percent of workers had deductibles in 2008, and 72 percent have them now.

High-deductible health plans are growing in enrollment as employers try to offer lower-premium alternatives, and other plans have narrow provider networks.

Carey said he recommends that people look at the New York State of Health marketplace to check their eligibility for a tax credit toward their premiums. Depending on family income, parents might also consider joining Children's Medicaid or Child Health Plus, New York state's insurance plan for kids.

Cayce Brockwell of Morris said she was satisfied with her insurance from Corning in Oneonta, and that it included full vision coverage for her children. She was disappointed with a smaller network of providers after A.O. Fox Hospital joined Bassett Healthcare Network.

"I think that everywhere it's not as great as it could be," she said. "It's not free."

Erin Jerome, staff writer, may be reached at (607) 441-7221, or at [email protected]. Follow her on Twitter at @DS_ErinJ .

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