Hoosiers concerned over rising health care costs

Kris Kirschner/Eyewitness News

Indianapolis - While the healthcare reform bill passed the House on Capitol Hill, here in the State Capitol, employees are wondering how they'll pay for the rising cost of health insurance.

A letter went out this week reminding state workers it's time to choose their health plan for the coming year. For many, the thought of what they'll pay is already making them sick.

"It does concern me," says Debbie Glover a BMV employee.

However, Glover says she's faring better than most.

"The cost for me for a single plan is going from not costing anything to costing me $10 a month," explained Glover.

State workers, who for the second year in a row, won't receive a pay increase, will on average pay more for health coverage in the coming year.

It's not just state workers feeling the pain. A new study shows that health insurance premiums have increased almost eight percent faster than wages in Indiana.

Families USA, which released the study, also found that in the past ten years, the average cost of family insurance doubled.

But Butler University School of Business professor Bill O'Donnell says don't blame insurance companies.

"Their profit margin hasn't increased and administrative and profit makes up less than 20 percent of the premium dollar. So what's driving this thing are claims," said O'Donnell.

With Indiana's unemployment among the highest in the nation and factors like H1N1 driving more people to hospitals and doctors offices, O'Donnell says costs will surely follow.

"The more people that get laid off, insurance companies see COBRA and expect it's going to increase so they know there are more claims coming down the road," said O'Donnell.

That means whichever healthcare plan Hoosiers pick, it's likely they'll pay a premium.

O'Donnell's advice is to see if your company offers a health savings account. He says putting money aside for health costs and choosing a higher deductible will lower the premium.

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