Health Insurance Now Tops $12K Per Family
Health insurance premiums paid by workers and their employers rose an average of 6.1% this year, outpacing inflation and pay increases and taking a bigger chunk out of families’ budgets, according to a new survey. That’s the lowest growth rate since 1999, when premiums rose 5.3% and cost an average of $2,196 for individuals and $5,791 for families. Premiums for employer-sponsored health insurance for the average family topped $12,000 — with employees picking up about one-fourth of that cost.
Insurance costs probably will rise again next year, according to the survey released today by the Kaiser Family Foundation, a health care research organization that annually tracks the cost of health insurance. Many of the more than 3,000 companies surveyed said they planned to make significant changes to their health plans and benefits. Since 2001, the cost of premiums has gone up 78%, far outpacing a 19% increase in wages and 17% jump in inflation.
Why ? Why? Why? Health insurance companies continue to see higher profits, but premiums keep going up because costs rise each year. And much of that is because, through the years, the health care system produces more tests, procedures and products that can treat more people, and all of that costs more money. Don’t have insurance? Work for a large company. The larger a business, the greater the chance it offers health insurance. Though premiums may be similar for smaller and larger companies, smaller ones have higher deductibles and their administrative costs for plans may be higher because there are fewer employees over which to spread the costs.
