Recent Study Shows Health Care Costs Doubled Over Past Decade

Posted in Group Health Insurance , Health Insurance

September 18th, 2009

A recent study shows that U.S. workers who have health insurance for their families through their employers have seen their premiums increase by more than double the price over the past decade. The study, which was released by the Kaiser Family Foundation on Tuesday, Sept. 15, 2009 showed that the average premium for a company-provided health insurance plan increased to $13,375 from $5,791 in 1999. This is a 131 percent jump.

The study also found that the employers’ portion of the health coverage increased. In 1999, the average cost was $1,543, and in 2009, the average cost is $3,515. Both employees and employers have been feeling the hit from these increased costs, which is why many employers finally threw in the towel, realizing their inability to provide coverage to some or all employees. What’s worse is that many employers who do provide coverage have decided to shift more financial responsibility for health coverage to their workers, by increasing either premiums or co-pays for doctor visits.

This issue is something that carries over into the debate over the new health care bill, the details of which were shared by Max Baucus on Wednesday evening (Sept. 16, 2009). In his bill, he proposed mandatory health coverage that will provide protection for those with pre-existing conditions, as well as newly-acquired illnesses. He also proposed tax credits for families and individuals making up to 300 percent of the federal poverty level, and government assistance for those in lower-income brackets. However, there is no promise that middle-class workers will not be hit with even higher premiums than they now have.

While economist Ben Bernanke has recently said that he believes the recession is technically over, he also noted that it will still feel weak for some time. For the millions struggling to pay part or all of their health coverage, there could be no greater truth in his sentiment.