Insurance premiums rose 6.1% in 2007 while worker's wages only increased by 3.7%; supporting the fact that growing numbers of employees cannot afford health insurance.
According to results of an annual survey of employer-sponsored health insurance plans conducted by the Kaiser Family Foundation and Health Research and Educational Trust, the average price for a family health insurance package in 2007 in the U.S. was $12,106. For an individual the average cost was $4,479 for the year. This represents a 78% increase since 2001. In addition to the rise in premiums, the average family's out-of-pocket expenses (for co-pays, deductibles and other out-of-pocket expenses) rose by about $1500.
The average cost for deductibles for a family plan ranged from $759 for HMO policies to $3596 for a high-deductible indemnity plan. Co-payments for in-network office visits ranged from $18-$30 per visit.
According to the survey, affordability of health insurance is not going to get better. In fact 44% of employers surveyed indicated they are likely to increase the copay for prescription drugs in 2008. Thirty seven percent said they plan to increase deductibles and 42% plan to increase co-pays for office visits. On a positive note, only 3% said they are considering dropping health insurance coverage all together.
This 2007 Kaiser/HRET study surveyed more than 3000 randomly selected companies with more than three employees.
Read more about this health care affordability crisis.
