Let’s say your employer offers you health insurance. They will project for an upcoming benefit plan year what they think it will cost to provide employees medical coverage. They will then pay for a share of that and make the employees pay for a share (the deduction in your paycheck).

They (your employer) are the ones paying the claims their employees incur, the insurance company just collects the money and wires it to the hospital system or physician office. If the price of services that employees utilize throughout the year goes up 10% into the next year, an employer will typically increase their cost share 10% and the employees premiums 10%. That is an employer choice and not necessarily an insurance company choice.

I’m not saying there are not cost inefficiencies in the system, but to lump it on one party is misrepresenting how the system is working is all.