Detroit Free Press: Health Care Costs Are Rising — and Michigan Businesses & Employees Are Feeling the Strain
Blue Daily
| 2 min read
Health insurance costs are putting immense pressure on Michigan employers and employees — and as the Detroit Free Press reports, it’s not because insurers are seeking bigger profits. Rates are going up because the cost of care itself keeps climbing.
Why health insurance rates are increasing
According to the Detroit Free Press, insurers are paying out far more in claims than they collect in premiums. The main drivers are clear:
- High drug prices that continue to surge year after year.
- Greater utilization, with more people seeking care and procedures.
- Higher provider rates, driven by staffing shortages and hospital consolidation.
The impact on employers and workers
From small businesses like Marquette-based Kall Morris Inc., which says rising premiums are slowing hiring, to large employers facing compounded increases of over 40% in just three years, the pressure is real. Rising health care costs mean less money for growth, raises, and benefits.
What this means for our members
At Blue Cross Blue Shield of Michigan, we see the strain these costs put on families and businesses every day. Last year alone, we paid out more in claims than we collected in premiums, resulting in more than $1 billion in losses. That reflects a simple truth: we are paying more money for our members’ care than we are collecting in premiums.
We are laser-focused on affordability: working to bring down the price of prescription drugs, partnering with providers to reward value over volume and investing in healthier communities so care is more sustainable in the long run. Every effort is aimed at one thing — making health care more affordable for the people and businesses who rely on us.
Learn more about how we’re tackling affordability: mibluedaily.com/affordability
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