Side Effects: Why Deductibles Matter

Insurance, why deductibles matter

Two score and 16 years ago, Kennedy was winning and this country was spending $2.7 billion for prescription meds.  That's  $15 for every American, 115 in today's dollars.

That's nothing like what we spend now.  In 2014, we spent $297 billion, or $933 of prescription drugs for every American man, woman and child.  Take inflation into consideration. That represents more than a 600% increase.

And because of a quiet revolution in health insurance,  that increase, is draining our wallets.  It used to be most insurance involved co-pays, the fixed amount you pay for a service.  You paid a little, maybe 15 bucks for a prescription. Insurance picked up the rest – co pay. 

Today it's all about deductibles, an amount you must pay before insurance kicks in.  In 2006, only 10%  of people who received insurance through work had a deductible of a thousand or more.  Today,  for the first time, a majority do,  And many have deductibles of $3,000, $5,000 $10,000. So when prescription drug companies boost prices by 100%, 200%, 600%,  those who rely on those drugs and have deductibles pay more; sometimes a lot more.

No wonder why we're all paying more out of pocket for health care.  Add up deductibles, copays and premiums, we're paying nearly 90% more in ten years; far outpacing the rate of inflation. 
SO consider all of that, when you consider why we are taking a much closer look at the price spikes of 100 prescription drugs; many of which have been around for at least a score or two.


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