The 8% Tax Increase You Didn't Even Know You Got

If you pay taxes, you're going to love [this]. 

Let's put this all into perspective.  We all know that every company in the U.S. has been dealing with rising healthcare costs.  Every employer has had to make tough choices to be profitable, attract talented workers, and compete. 

Federal employees - there are 8 million of them - and their employers (arguably you and I) were recently dinged for an 8% increase in their health insurance costs.  60% of federal employees are enrolled in Blue plans which rose a whopping 13%.  Any of you get a 13% pay raise this year?  Was there a vote to increase the principle cost of government (government employees) by 8%?  Maybe I missed it.  The article reads, "...those [employee-paid] amounts represent about 30 percent of the plan's total cost. The government picks up the remaining 70 percent."  By "government" they of course mean you and I.

Interestingly, the reasons cited by the Office of Personnel Management (basically HR for federal workers) were exactly why CDH plans work better. 

"Jena Estes [VP of FEP for BCBSA] blamed a relatively slow shift to generic drugs by enrollees as one reason its increases are higher than average."  I am quite certain that if federal employees had an HDHP with an HSA that shift would have happened in the first month of the plan.  There is just not enough incentive for these 8 million federal workers to get healthy and spend wisely, and here's your proof.  [Washington Post]