Working Americans are about to get hit with the biggest health insurance rate hikes since 2010. Costs are jumping 9% next year, and your employer's going to make you pay for most of it.

Mercer surveyed 1,700 employers and found 6 in 10 will shift these costs to workers through higher deductibles and copays. So not only will your paycheck deductions go up 6-7%, but you'll also pay more every time you actually need healthcare.

Beth Umland from Mercer called this "a little bit of a catchup year." That's corporate-speak for "we've been eating costs for years and now you're paying the bill." Companies shielded workers during COVID, but that ship has sailed.

The Timing Couldn't Be Worse

Consumer confidence is tanking, auto loan defaults are surging, and now your health insurance is about to eat another chunk of your paycheck. Meanwhile, 4 million people on ACA marketplace plans might lose coverage entirely if Congress doesn't extend pandemic-era tax credits.

Why the massive increases? Hospitals, doctors, and drug companies jacked up prices because they can. Healthcare workers got raises - good for them - but providers are passing those costs to you. Plus, Americans are using more healthcare, probably because we're sicker than ever from stress, processed food, and sitting at desks all day.

"For the exact same service a year ago - a visit to the doctor - is about 3 to 4% higher," said Sunit Patel from Mercer. "The rest is related to greater utilization of services."

Weight-loss drugs like Wegovy and Zepbound are also driving costs. Less than half of employers cover these for weight loss, but nearly all cover them for diabetes. So, get diagnosed with diabetes first, then get your Ozempic. Healthcare logic.

Companies are trying to "control costs" by offering plans with smaller networks that exclude expensive hospitals. Mercer says this could trim increases to "only" 6.5%. Congratulations, your insurance now covers fewer places, costs more, and you'll still pay higher deductibles.

Shawn Gremminger from the National Alliance of Healthcare Purchaser Coalitions didn't sugarcoat it: "The fact that prices seem to be accelerating is really bad news."

Healthcare spending slowed during COVID when nobody could see doctors. Now it's roaring back with vengeance.

Employers Get Creative With Cost-Shifting

"Tiered networks" charge you more for going to better hospitals. "Tailored plans" limit which doctors you can see. It's all designed to funnel you toward cheaper care, not better care.

More than a third of large employers will offer these restricted plans next year. They'll pitch it as "choice" during open enrollment, but it's really choosing between bad and worse.

The deductible game is particularly cruel. A $5,000 deductible means you pay the first five grand before insurance does anything meaningful. For a family making $60,000, that's nearly 10% of gross income just to activate the insurance they're already paying for through payroll deductions.

Companies requesting claims data to "identify sources of high costs" sounds responsible until you realize they're looking for ways to exclude expensive treatments or providers. Got cancer? Your company now knows you're costing them money.

Gremminger explained employers are "trying to narrow your network and drive people to lower-cost, higher-quality hospitals." Except "lower-cost" usually means further away, less convenient, and with longer waits. "Higher-quality" is corporate PR speak.

The pill versions of weight-loss drugs coming from Eli Lilly and Novo Nordisk might help - if they're cheaper and if insurance covers them. Big ifs in American healthcare.

Acting Administrator Sean Duffy suggested companies might analyze costs better to provide value. Translation: they'll find more ways to deny coverage while claiming it's for your benefit.

Here's What's Really Happening:

Healthcare costs rise faster than inflation every single year. Employers pass those increases to workers. Workers can't afford to use their insurance because of high deductibles. People skip care, get sicker, and eventually need expensive emergency treatment. The cycle repeats.

The system's working exactly as designed - to extract maximum profit while providing minimum care. Your employer doesn't want to pay for your healthcare. Insurance companies don't want to cover your treatments. Hospitals want to charge as much as possible. You're just the wallet getting squeezed from all sides.

During open enrollment, you'll get to "choose" between plans that all cost more and cover less. Maybe a high-deductible plan with an HSA you can't afford to fund. Maybe a PPO with a network that excludes your doctor. Maybe an HMO where you need permission to sneeze.

The 9% increase is just the average. If you're older, sicker, or have a family, expect worse. And next year? Expect another increase. And the year after that? You get it.

Welcome to American healthcare, where insurance is mandatory, unaffordable, and barely works when you need it.