Data from the Kaiser Family Foundation shows that health insurance costs rose for workers this year, but did so more slowly than in the recent past.
The expense of employer-sponsored family coverage reached about $16,000 in annual premiums, up about 4 percent. Individual premiums rose approximately 3 percent, according to the research, to an average cost of $5,615. The foundation predicted that employers will shift more costs to workers next year, continuing a recent trend as companies strive to contain healthcare expenses that have grown rapidly for years.
That may be problematic for many employees, given the limited wage growth that has occurred recently. They may find it increasingly challenging to pay for their employee benefits. Fortunately, the 4 percent growth rate is significantly lower than the 10 and 13 percent increases posted during 2004 and 2003, respectively. Even with that improvement, however, expenses are still rising and the problem is not solved.
The foundation reports that healthcare costs have risen about 97 percent since 2002. That is roughly three times faster than wage growth and inflation, placing workers in a difficult position. While proponents have said health reform will address these issues, employers have compensated largely by shifting to high-deductible plans or other measures which make workers responsible for more of the risks associated with high costs. It remains to be seen how effective the measures already in progress will be.
