Daily Archives: March 3, 2013

Dear health insurance company…

Dear health insurance company… Your recent letter indicating that rates are “only” increasing 5% in 2013 is a joke. You realize the math, right? If inflation is ~3% currently/historically, then a 5% annual increase (effectively 2% in current year dollars) means that health insurance prices will DOUBLE in ~36 years (using the “rule of 72”). 1.02^36 ~= 2

Yeah, good luck with that working out everyone!

See also:
http://www.bls.gov/data/ or google “inflation historical”
– rule of 72 — http://en.wikipedia.org/wiki/Rule_of_72

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Filed under health, health insurance, math