15 September 2009

Premiums

Ezra Klein - A Number Is Worth a Thousand Words
The average cost of a family health insurance policy in 2009 was $13,375.

Over the past ten years, premiums have increased by 131 percent, while wages have grown 38 percent and inflation has grown 28 percent.

If health-care costs grow as fast as they have over the past five years, the average premium for a family policy in 2019 will be $24,180. If they grow as fast as they have over the past 10 years, premiums in 2019 will average $30,803.
Yeah, that's exactly our experience.  A bitter irony of my position is that I administer our group's benefits and, as a physician group, every single year we have more and more trouble finding health insurance, and every year it gets 5%, 10%, 15% more expensive.  We're lucky; although our doctors bear the full cost of the premiums, the income levels are such that it is tolerable.  Our PAs are more impacted by the escalating costs; by necessity we cover the full cost for our few non-clinical employees.  I can't imagine how difficult it must be for a regular small business with lower salaries to absorb these costs.

I saw a comment somewhere that while the wages of middle-class workers were more or less stagnant during the last decade, if you count the increased cost of health insurance (which is part of total compensation, though not typically counted as "income") then the average worker did enjoy significant increases in compensation over the 2000's.  Um, Yay?

3 comments:

ERP said...

And it looks like the public option is dead. Hmmmmmm. WTF is going to happen?

litbrit said...

I can't imagine how difficult it must be for a regular small business with lower salaries to absorb these costs.

I'll use a medical term: it blows chunks.

They can't let the public option die. They just can't. Arrrrrrgh.

Max said...

Wages grown 38 percent??? Really? I havent noticed that. Maybe DR' or CEO wages? Certainly not IT pro wages