New Jerseyans and their employers spent more than $7,900 per person on health care in 2021, a study released Thursday by the Murphy administration found, 15% higher than the national average and a sharp jump from the years before COVID-19.
The increase in spending was driven by higher prices, the authors said, noting that consumers didn’t visit hospitals or doctors’ offices much more frequently.
“It supports pretty much what we’ve all been feeling and hearing,” said Laura Waddell, health care program director for New Jersey Citizen Action, a consumer group. “Health care affordability has been (an issue) for a long time now and it’s been affecting all of us in so many ways.”
The study was one of four reports released by the Murphy administration as part of its Health Care Affordability, Responsibility and Transparency Program, or HART, for short. The program, launched in 2021, is expected to provide data that can help guide policymakers.
It’s one of a series of laws and initiatives that have been rolled out both statewide and nationwide since the Affordable Care Act began in 2010 in a bid to increase access to health care and slow down the fast-rising costs.
Still, many consumers say they remain squeezed. A 2022 survey by the nonprofit health researcher Altarum found nearly three in five New Jerseyans reported being burdened by health care costs within the last year, without signs that health outcomes are improving, the authors said.
Can New Jersey slow the increase in health costs?
The Murphy administration has set out to slow down the rate of health care spending hikes to 3% by next year and 2.8% by 2026.
Is it attainable? One study of New Jersey residents who are between the ages of 18 and 64 and are covered by commercial insurers found:
- Room to improve. Spending in New Jersey increased from $518 a month per person in 2016 to $659 a month in 2021, or 4.9% a year.
- Post-COVID spike. Per-person spending before the pandemic rose modestly from 2016 through 2020 before bouncing back. It increased 17.4% in 2021, raising the question of whether the rebound was a blip due to overall inflation or part of a larger trend.
- Spending grew in all categories. Annual spending from 2016 to 2021 increased on average 5.9% for inpatient hospital stays; 5.1% for office visits; 4.7% for outpatient services; and 4.2% for retail drugs.
- Monmouth and Ocean counties were the priciest. Per-person spending in the region was $8,573 in 2021. That was 14% higher than the market with the lowest spending, the Middlesex County region.
- Out-of-pocket costs rose, too, but could be worse. Employers typically cover about two-thirds of employees’ health insurance premiums, while workers on average pick up the rest, according to the Bureau of Labor Statistics. In New Jersey, employees spent on average of $901 out of pocket on deductibles and co-pays, less than the national average of $944.
What do New Jerseyans spend on health care each year? It’s been speeding up
app.com
September 30, 2024 11:07 am
New Jerseyans and their employers spent more than $7,900 per person on health care in 2021, a study released Thursday by the Murphy administration found, 15% higher than the national average and a sharp jump from the years before COVID-19.
The increase in spending was driven by higher prices, the authors said, noting that consumers didn’t visit hospitals or doctors’ offices much more frequently.
“It supports pretty much what we’ve all been feeling and hearing,” said Laura Waddell, health care program director for New Jersey Citizen Action, a consumer group. “Health care affordability has been (an issue) for a long time now and it’s been affecting all of us in so many ways.”
The study was one of four reports released by the Murphy administration as part of its Health Care Affordability, Responsibility and Transparency Program, or HART, for short. The program, launched in 2021, is expected to provide data that can help guide policymakers.
It’s one of a series of laws and initiatives that have been rolled out both statewide and nationwide since the Affordable Care Act began in 2010 in a bid to increase access to health care and slow down the fast-rising costs.
Still, many consumers say they remain squeezed. A 2022 survey by the nonprofit health researcher Altarum found nearly three in five New Jerseyans reported being burdened by health care costs within the last year, without signs that health outcomes are improving, the authors said.
Can New Jersey slow the increase in health costs?
The Murphy administration has set out to slow down the rate of health care spending hikes to 3% by next year and 2.8% by 2026.
Is it attainable? One study of New Jersey residents who are between the ages of 18 and 64 and are covered by commercial insurers found:
- Room to improve. Spending in New Jersey increased from $518 a month per person in 2016 to $659 a month in 2021, or 4.9% a year.
- Post-COVID spike. Per-person spending before the pandemic rose modestly from 2016 through 2020 before bouncing back. It increased 17.4% in 2021, raising the question of whether the rebound was a blip due to overall inflation or part of a larger trend.
- Spending grew in all categories. Annual spending from 2016 to 2021 increased on average 5.9% for inpatient hospital stays; 5.1% for office visits; 4.7% for outpatient services; and 4.2% for retail drugs.
- Monmouth and Ocean counties were the priciest. Per-person spending in the region was $8,573 in 2021. That was 14% higher than the market with the lowest spending, the Middlesex County region.
- Out-of-pocket costs rose, too, but could be worse. Employers typically cover about two-thirds of employees’ health insurance premiums, while workers on average pick up the rest, according to the Bureau of Labor Statistics. In New Jersey, employees spent on average of $901 out of pocket on deductibles and co-pays, less than the national average of $944.