Navigation Links
New report: Employer health insurance premiums increased 62 percent from 2003 to 2011
Date:12/11/2012

New York, NY, December 12th, 2012Average premiums for employer-sponsored family health insurance plans rose 62 percent between 2003 and 2011, from $9,249 to $15,022 per year, according to a new Commonwealth Fund report. The report, which tracks state trends in employer health insurance coverage, finds that health insurance costs rose far faster than incomes in all states. Workers are also paying more out-of-pocket as employee payments for their share of health insurance premiums rose by 74 percent on average and deductibles more than doubled, up 117 percent between 2003 and 2011.

The report, State Trends in Premiums and Deductibles, 2003-2011: Eroding Protection and Rising Costs Underscore Need for Action, finds that total health insurance premiums now amount to 20 percent or more of annual median family incomes in 35 states, affecting 80 percent of the U.S. working-age population. States in the South and South-Central U.S. had the highest costs relative to household incomein West Virginia, New Mexico, South Carolina, and Texas, average total health insurance premiums amounted to more than 25 percent of median incomes.

"Wherever you live in the United States, health insurance is expensive, and for many middle- as well as low-income families it is becoming ever less affordable," said Commonwealth Fund senior vice president Cathy Schoen, lead author of the report. "Workers are paying more for less financial protection when they get sick. The steady increase in health care costs over the past decade underscores the urgent need to build on the groundwork laid by the Affordable Care Act to slow the growth in private insurance costs."

In 2011, average annual premiums for family plans ranged from about $12,400 to $13,500 in the lowest-cost states (Arkansas, Alabama, Iowa, Tennessee, Idaho, Mississippi, Utah, and North Dakota), to more than $15,000 a year in 21 states. Premiums averaged from $16,000 to nearly $17,000 in Delaware, Alaska, Connecticut, Vermont, New York, the District of Columbia, New Hampshire, and Massachusetts, which have the highest average family premiums.

Paying More for Less

Premiums rose far faster than incomes across the country from 2003 to 2011. While average family premiums jumped 62 percent during that time, median family income rose just about 11 percent. The increase in premiums ranged from 42 percent in the lowest-growth state, Tennessee, to 76 percent in the highest-growth state, New York. Twenty-seven states had increases of 60 percent or more.

The report finds that deductibles and employees' premium shares grew, leaving employees with more out-of-pocket expenses and less protective health insurance benefits. The average annual amount an employee paid toward a family health insurance plan rose from $2,283 in 2003 to $3,962 in 2011a 74 percent increase. Looking state-by-state, employee contributions ranged from about $3,300 in Indiana, Hawaii, West Virginia, Ohio, and Wisconsin, to more than $4,600 in Arizona, South Carolina, New Mexico, Colorado, and Mississippi.

Deductibles more than doubled from 2003 to 2011, increasing an average of 117 percent per person during the eight years the report studied. In 2011, 78 percent of workers faced deductibles, up from 52 percent in 2003. In 2011 average deductibles exceeded $1,000 in 35 states, compared to none in 2003. Deductibles have been rising for employees working for large as well as small firms. However, workers in small firms with fewer than 50 employees typically face higher deductibles than those working for larger firms. Deductibles in small firms were highest in North Carolina, Texas, and Vermont, exceeding $2,200 per person.

Future Trends: Affordable Care Act Provides Platform for Further Action

If historical trends continue, family premiums will reach $24,740 by 2020, an increase of 65 percent from 2011. The analysis also shows that slowing the rate even modestly would make a significant difference for families and businesses. For example, reducing the annual growth rate by one percentage point would lead to $2,029 in savings for families by 2020. Slowing annual cost growth by 1.5 percent would yield savings of $2,986 per family.

The report's authors note that the Affordable Care Act lays the groundwork for lowering cost growth and improving and expanding insurance coverage. The law's provisions put pressure on private insurance plans to lower their overhead and focus on the underlying costs of health care, setting standards for how much of each premium dollar must go to health care, as opposed to administrative costs, with insurers who don't meet the new standard paying rebates to policyholders. Other reforms provide private insurers with a platform for further cost-reduction efforts. The authors conclude, however, that more will need to be done to confront the forces driving up the cost of care in private insurance markets.

"The Affordable Care Act has put the United States on a path toward a high performing health care system, where everyone has access to high-quality, affordable, and secure health care," said Commonwealth Fund president Karen Davis. "As we implement the law's reforms, it will be crucial to stabilize cost growth by holding care systems and private insurers accountable for better outcomes and lower costs."


'/>"/>

Contact: Mary Mahon
mm@cmwf.org
212-606-3853
Commonwealth Fund
Source:Eurekalert

Related medicine news :

1. Report: 39 States on Pace for Obesity Rates Above 50%
2. Report: Cancer now leading cause of death in US hispanics
3. New report: The ACAS PCIP serving as a bridge; High-risk pools not a long-term solution
4. Report: Strategies to prevent noise-induced hearing loss, tinnitus in soldiers
5. Defined Contribution: A Healthcare Win for Brokers, Employers & Employees - Zane Benefits Publishes Information
6. A safer porn policy for employers
7. Good Feelings About Ex-Employer May Boost Self-Esteem in Jobless
8. Heart attack packs a wallop to wallet of survivors, their employers
9. Games improve employee health and well-being, may reduce health insurance premiums for employers
10. Home Healthplex Revolutionizes the way to Search for Home Health Agencies with an Application that is Available from your Smart Phone
11. Long-term public health support needed to tackle infectious disease outbreaks
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... ... June 26, 2016 , ... On June 10-11, 2016, A Forever ... Cereal Festival and World’s Longest Breakfast Table in Battle Creek, MI, where the rehabilitation ... as home to some of the world’s leading providers of cereal and other breakfast ...
(Date:6/26/2016)... Michigan (PRWEB) , ... June 26, 2016 , ... ... to fertility once they have been diagnosed with endometriosis. These women need a ... they also require a comprehensive approach that can help for preservation of fertility ...
(Date:6/25/2016)... ... June 25, 2016 , ... "With 30 hand-drawn hand gesture ... said Christina Austin - CEO of Pixel Film Studios. , ProHand Cartoon’s package ... Final Cut Pro X . Simply select a ProHand generator and drag it ...
(Date:6/25/2016)... , ... June 25, 2016 , ... On Friday, June ... a Bronze Wellness at Work award to iHire in recognition of their exemplary accomplishments ... of the 7th annual Maryland Workplace Health & Wellness Symposium at the BWI Marriott ...
(Date:6/24/2016)... ... June 24, 2016 , ... June 19, 2016 is World Sickle ... chronic pain and the benefits of holistic treatments, Serenity Recovery Center of ... Sickle Cell Disease. , Sickle Cell Disease (SCD) is a disorder of the red ...
Breaking Medicine News(10 mins):
(Date:6/26/2016)... , June 27, 2016  VMS Rehab Systems, Inc. ... will take whatever measures required to build a strong ... which is currently listed on the OTC Markets-pink current ... Chairman and CEO, "We are seeing an anomaly in ... understand, not only by the Company, but shareholders and ...
(Date:6/24/2016)... June 24, 2016  Consumers have taken a ... have placed more emphasis on patient outcomes. ... programs in the pharmaceutical industry have evolved beyond ... pharmaceutical companies are focusing on becoming more patient-oriented ... products and services that improve health. ...
(Date:6/24/2016)... SAN FRANCISCO, Calif. , June 24, 2016 ... GBT ), a biopharmaceutical company developing novel therapeutics ... significant unmet needs, today announced the closing of ... shares of common stock, at the public offering ... shares in the offering were offered by GBT. ...
Breaking Medicine Technology: