Health Insurance Costs Rise Faster Than Wages

Health insurance premiums for workers are rising around three times faster than their wages, and health costs eat up a quarter of earnings for more than 14 million Americans, according to a survey on Tuesday. While benefits are being cut, health insurance premiums are rising, the report from the nonprofit Families USA found. "Working families were squeezed by runaway health care costs over the past four years," said Families USA executive director Ron Pollack. "As a result, workers are paying much more in premiums but are receiving less health coverage, wages are being depressed; and millions of people have lost health coverage entirely." The cost of health insurance premiums rose by nearly 36 percent on average from 2000 to 2004 in 35 states, said the group, which bills itself as a nonpartisan watchdog on health care issues. Average earnings rose just 12 percent over the same time. The Families USA report found that health insurance plans provided by employers are covering fewer health services and workers are paying higher deductibles and copayments. More than 60 percent of Americans get their health insurance through an employer, according to Census Bureau statistics. But the number of people without insurance rose last year from 43 million to 45 million and some experts say rising insurance costs are in part to blame. Families USA said it found 85.2 million people went without health insurance for some time during 2003 and 2004. [more ]