The Kaiser Family Foundation and the Health Research and Educational Trust published its 2009 Employer Health Benefits Survey. We posted it on our site you can get it by clicking here.
For those who are questioning any need for reforming the cost structure of our health care system- let’s just do a little math exercise:
In 2009, the average cost for family coverage increased to $13,375 for family and $4,824 for single coverage. As a reference the average cost for family coverage was $5,700 in 1999. The cost increase from 2008 to 2009 was relatively stable for single coverage, and family coverage increased a modest 5%. But, keep in mind these pricing changes are likely softened by the increased cost-shifting to individuals through higher co-pays and deductibles- we pay more, the health plan pays less.
Employers continue to pick up most of the tab by contributing 74% of the cost for family coverage- we pay $3,477.50 and the employer pays $9,897.50.
The study then provided some other background information comparing 2008 to 2009:
Individuals with deductibles over $1000 increased from 18% to 22%
21% of the employers increased co-pays or reduced benefits
15% of the employers increased the contribution requirements of employees
60% offered benefits in 2009 (compared to 66% in 1999). Only 46% of small businesses offered benefits in 2009 compared to 56% in 1999.
I believe we can safely assume that if things don’t change more of the costs of health care will continue to be shifted to the individual (through high-deductibles, copays, benefit cuts, or increased contributions) or the benefits will simply be dropped because they are too expensive.
The study then projects that if things don’t change and the cost of family coverage increases 8.7% over the next decade (as it has in the past), the cost of family coverage will exceed $30,000 per year. Assuming the same contribution levels between employee and employer, this means individual families will need to double-down what they are paying today for their health care benefits (to $7,800 per year) and employers will need to kick-in over $22,000 per family.
Eighty-percent may be satisfied with the health care coverage they have today. But, we wonder if the same people will be as satisfied when all these projections become a reality.
You do the math.
For those who are questioning any need for reforming the cost structure of our health care system- let’s just do a little math exercise:
In 2009, the average cost for family coverage increased to $13,375 for family and $4,824 for single coverage. As a reference the average cost for family coverage was $5,700 in 1999. The cost increase from 2008 to 2009 was relatively stable for single coverage, and family coverage increased a modest 5%. But, keep in mind these pricing changes are likely softened by the increased cost-shifting to individuals through higher co-pays and deductibles- we pay more, the health plan pays less.
Employers continue to pick up most of the tab by contributing 74% of the cost for family coverage- we pay $3,477.50 and the employer pays $9,897.50.
The study then provided some other background information comparing 2008 to 2009:
Individuals with deductibles over $1000 increased from 18% to 22%
21% of the employers increased co-pays or reduced benefits
15% of the employers increased the contribution requirements of employees
60% offered benefits in 2009 (compared to 66% in 1999). Only 46% of small businesses offered benefits in 2009 compared to 56% in 1999.
I believe we can safely assume that if things don’t change more of the costs of health care will continue to be shifted to the individual (through high-deductibles, copays, benefit cuts, or increased contributions) or the benefits will simply be dropped because they are too expensive.
The study then projects that if things don’t change and the cost of family coverage increases 8.7% over the next decade (as it has in the past), the cost of family coverage will exceed $30,000 per year. Assuming the same contribution levels between employee and employer, this means individual families will need to double-down what they are paying today for their health care benefits (to $7,800 per year) and employers will need to kick-in over $22,000 per family.
Eighty-percent may be satisfied with the health care coverage they have today. But, we wonder if the same people will be as satisfied when all these projections become a reality.
You do the math.
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