Posted on September 18, 2009

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Family Health Premiums Have More Than Doubled in Past Decade, Survey Finds

Premiums for employer-sponsored health insurance rose to $13,375 for family coverage this year — a year-over-year increase of 5 percent — while inflation fell nearly 1 percent and wages rose 3.1 percent, a new survey by the Kaiser Family Foundation and the Health Research & Educational Trust finds.

According to the 2009 Employer Health Benefits Survey (238 pages, PDF), employees pay $3,515 on average for family coverage while employers contribute $9,860. Now in its eleventh year, the survey also found that since 1999 premiums have risen by 131 percent, far more rapidly than workers' wages (38 percent) or inflation (28 percent), although the rate of increase has eased over the past few years.

Based on responses from 2,054 private firms and non-federal employers, the survey found that of the 60 percent of firms that offer health benefits, 21 percent reported that they have reduced the scope of their health benefits or have increased cost-sharing due to the recession, while 15 percent reported that they had increased the worker's share of the cost. When asked about their plans for next year, 21 percent of the firms offering health benefits say they are "very likely" to raise the portion paid by employees, 16 percent say they are "very likely" to raise deductibles, 4 percent said they are "very likely" to restrict eligibility for coverage, and 2 percent said they are "very likely" to drop health coverage altogether.

"[The 2009] survey results demonstrate the need for comprehensive, meaningful reform," said HRET president Maulik S. Joshi, who is also senior vice president for research at the American Hospital Association. "Our nation faces a unique opportunity to achieve reform and build a better health care system that improves care for patients and provides coverage for all at an affordable cost."

Hilzenrath, David. “Many Employers to Raise Cost of Health Benefits, Survey Finds.” Washington Post 9/16/09.

“Family Health Premiums Reach $13,375 Annually in 2009 Up 5 Percent as Inflation Fell Nearly 1 Percent.” Henry J. Kaiser Family Foundation Press Release 9/15/09.

Primary Subject: Health
Secondary Subject(s): Public Affairs
Location(s): National

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