Health-Care Premiums Climbing Faster Than Inflation, Studies Say
Vanessa Fuhrmans
Wall Street Journal
Health-care premiums of employers and their workers have climbed more than twice as fast as inflation in 2007 -- to about double their cost in 2000 -- and look to rise at a similar or slightly faster clip next year, a pair of nationwide surveys show.
The average family premium has risen 6.1% in 2007, according to an annual study by the Kaiser Family Foundation and the Health Research and Educational Trust. A widely watched barometer of employer health-care costs, the joint survey of 1,997 employers contained a modicum of good news: This is the fourth straight year premiums have decelerated since soaring nearly 14% in 2003.
But after a decade of inflation-topping increases, the annual cost for family coverage through an employer plan is now more than $12,000, well over what a minimum-wage worker earns in a year. Workers now pay on average $3,281 a year to cover their share of that family policy, double what they did in 2000, the survey found.
Small businesses and their employees are bearing the brunt. Though 99% of companies with more than 200 employees continue to offer some sort of health-care coverage, only 59% of smaller businesses have a company plan, compared with 68% in 2000. Among those with fewer than 10 workers, only 45% do, down from 48% a year ago.
September 12, 2007 at 12:00 AM | Permalink | Blog Reactions
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