Private Insurance Doesn't Mean Lower Out-Of-Pocket Costs

Private health insurance doesn't mean the holder will spend less on healthcare. In actuality, the holder is helping employers keep their health care spending down. From 2009 to 2013 the amount people with private insurance paying out of pocket for hospital visits grew by 37 percent, Bloomberg reported.

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The study conducted by University of Michigan suggests employers are using high-deductible plans to keep premium costs low. Data showed that out of pocket costs increased 6.5 percent a year and the average cost for hospitalization was more than a $1000. During the study deductibles grew 86 percent and coinsurance costs rose 33 percent.

Emily Adrion, first author of the Michigan study, said, "When it comes to insured people with high quality employer sponsored coverage you assume they aren't subject to high costs."