About My Health Careers Internship MedBlogs Contact us

US Health Insurance Costs Rise Nearly Twice as Fast as Pay: Survey

by VR Sreeraman on September 13, 2007 at 6:37 PM
Font : A-A+

US Health Insurance Costs Rise Nearly Twice as Fast as Pay: Survey

The cost of health insurance in the United States climbed nearly twice as fast as wages in the first half of 2007, with family coverage costing employers around 1,000 dollars (714 euros) a month, a poll showed Wednesday.

Premiums for employer-sponsored health insurance rose an average of 6.1 percent in 2007, while wages went up by 3.7 percent, the Employer Health Benefits Survey released by the Kaiser Family Foundation and the Health Research and Educational Trust showed.


The 6.1 percent rise in health insurance premiums marked a slowdown from the rate of increase last year, but also strongly outpaced inflation, running at 2.6 percent.

"In 2007, the increase in health insurance premiums was about twice the rate of inflation and not quite twice the increase in workers' pay," Kaiser vice-president Gary Claxton said in a webcast.

Premiums for family coverage have surged by 78 percent since 2001, while wages have gone up 19 percent.

The average premium for family coverage in 2007 was just over 12,000 dollars, with workers having to pick up part of the cost.

Workers contributed, on average, 273 dollars a month towards family health coverage packages, up from 248 dollars last year, the survey, which polled just over 3,000 public and private employers with three or more workers during the first five months of 2007, showed.

"Every year health insurance becomes less affordable for families and businesses. Over the past six years, the amount families pay out of pocket for their share of premiums has increased by about 1,500 dollars," Drew Altman, chief executive of Kaiser, said in a statement.

Employers in the United States offer health insurance packages as a worker benefit.

In 2007, 60 percent of US firms offered health benefits.

That was down by nine percentage points on companies offering health care packages in 2000, the survey showed.

Low-paid workers were found to have the fewest healthcare options, because the small firms they tend to work for are less likely to offer coverage.

The high cost of premiums was cited as a main reason firms fail to provide healthcare coverage to their employees.

A survey released last month by the US Census Bureau showed that 47 million people had no health insurance in the United States last year, up from 44.8 million in 2005.

Source: AFP

News A-Z
News Category
What's New on Medindia
Printed Temperature Sensors help with Continuous Temperature Monitoring
Health Benefits of Giloy
Breast Cancer Awareness Month 2021 - It's time to RISE
View all

Medindia Newsletters Subscribe to our Free Newsletters!
Terms & Conditions and Privacy Policy.

More News on:
Health Insurance Plan Third Party Administrators for Health Insurance Star Health and Allied Insurance Health Insurance Policies offered by Bajaj Allianz Insurance ICICI Lombard General Insurance Company Limited Health Insurance Health Insurance - Ombudsman Health Insurance - Basics New India Assurance Policies Cholamandalam Health Insurance Policies 

Recommended Reading
Health Insurance - Basics
Health insurance guarantees payments to a person in the event of sickness or injury.and works as .....
Cholamandalam Health Insurance Policies
Cholamandalam MS General Insurance Company (Chola MS) a joint venture of Murugappa Group & Mitsui Su...
Health Insurance - Basics
Health insurance guarantees payments to a person in the event of sickness or injury.and works as pr...
Health Insurance - Ombudsman
Insurance Ombudsman institutions work for the purpose of quick disposal of the grievances of the ins...
Health Insurance Plan
With a health insurance policy you and your family can rest assured!...
Health Insurance Policies offered by Bajaj Allianz Insurance
Bajaj allianz health insurance policies protect you and your family in case you need expensive medic...
ICICI Lombard General Insurance Company Limited
Major health care plans from the ICICI Lombard include complete health insurance ihealth plan, perso...
New India Assurance Policies
The existing Mediclaim and Health Plus Medical expenses policies have been discontinued and Mediclai...
Star Health and Allied Insurance
Star Health & Allied Insurance offers a convenient insurance for the corporate people when they tra...
Third Party Administrators for Health Insurance
TPA is an IRDA approved healthcare service provider. TPA processes claims for policy holders on beha...

Disclaimer - All information and content on this site are for information and educational purposes only. The information should not be used for either diagnosis or treatment or both for any health related problem or disease. Always seek the advice of a qualified physician for medical diagnosis and treatment. Full Disclaimer

© All Rights Reserved 1997 - 2021

This site uses cookies to deliver our services. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use