According to a recently published report by the Kaiser Family Foundation and Health Research & Educational Trust, health insurance premiums have doubled since 1999 and will continue to skyrocket in the future. This is bad news for employers and employees alike.
An average employer-based family plan now costs the employer an average of $12,680 per year. And workers are paying about $3,354 a year from their wages to cover their share, double what they paid just nine years ago. Furthermore, more and more people are being forced into high-deductible plans.
Health insurance premiums rose 5% over the last year, a modest increase over the past several years. Health insurance premiums have doubled, however, since 1999! This is true even though several states have passed legislation limiting medical malpractice suits and jury awards.
The current situation is untenable. According to Drew Altman, President and CEO at Kaiser, health insurance premiums are rising 3 1/2 times faster than wages. A recent study conducted by Families USA found that health insurance premiums in Ohio rose 76.4 percent from 2000 to 2007 – from $6,596 to $11,636! Again, this is despite all of the “tort reform” legislation that deceivingly convinced Ohioans that lawsuits were the culprit responsible for rising health insurance costs.
The numbers do not lie. “Tort reform” has not reduced the cost of health care or health insurance. Furthermore, it is undeniable that the United States is in the midst of a health insurance coverage crisis.