We’ve all heard an old timer say something like, “Back in my day, you could buy a burger for 15 cents!” That’s because a dollar in 1955 would be worth $8.96 today. Reminiscing the “good ol’ days” might be one of the few benefits of inflation. As you know, every product and service is affected by inflation. Our wages increase as well, but have our wages kept up with inflation?
Since 1999, average wages have only increased about 2.9%. This means if you made $50,000 in 1999, and only received the average wage increase, you’d only be making $51,450 today. Absolutely lousy. Meanwhile, all products and services have also been steadily going up in price. This includes one of the highest inflated costs of all; healthcare premiums.
Your healthcare premium for the benefits your company provides has increased a whopping 324% since 1999! If you’re like me, you’re probably thinking this is an outrage. But why don’t we ponder this egregious increase more often? Let’s look at what the price would be of some every day grocery items, if they had increased at the same rate as healthcare premiums, for some perspective.
A gallon of milk in 1999 cost $2.88. After 324% of inflation you’d be paying almost $10. You’d pay $8 for a big mac and $13 for a 6 pack of Bud light. A can of Folgers coffee would cost you $33! Suddenly, 3 grocery items would easily set you back over $50. If your paycheck had increased 324% it wouldn’t be such a big deal, but for most of us, it didn’t. The truth is we wouldn’t stand for such inflation in our regular food items. So why do we settle for a 324% increase in our healthcare premiums?
Every year the value of your company provided “health benefits” is being massively eroded. Inflation is forcing innovation. Perhaps that’s the other benefit of inflation. The ACA is one change that was forced into being by inflation, however, it was not the end all, be all answer. Innovation, technology, and a willingness to embrace change is our best bet at escaping this “benefit erosion”. Enter Hixme; a unique, digital, health exchange platform that solves the problems of run-away benefit costs and deteriorating employee satisfaction for large employers.
Would you be interested in your “benefits” truly benefitting you again?