Employer Health-Insurance Premiums Still Costly, Survey Says

Health Insurance premiums for employer-sponsored programs rose just over six percent in 2007, higher than the overall inflation rate and wage increases, according to a study released by the Kaiser Family Foundation and Health Research and Educational Trust.

While the increase was lower than the eight percent figure reported for 2006, family and individual coverage premiums were still pricey. The study found that the average premium for family coverage in 2007 is $12,106. Employees must allot nearly $4,000 to cover their portion of a family policy.

“We’re seeing some moderation in health-cost increases, but premiums for family coverage now top $12,000 annually,” Kaiser President and CEO Drew E. Altman, Ph.D. said. “Every year health insurance becomes less affordable for families and businesses. Over the past six years, the amount families pay out of pocket for their share of premiums has increased by about $1,500.”

“The number of options for low wage earners is limited and the greatest burden of all health care costs falls to this segment of the population,” said Health Research and Educational Trust President Mary A. Pittman, Dr. P.H. “Although the economy seems to be strong, between 2005 and 2006 the total number of uninsured still rose by 5 percent, including a 9 percent increase in the number of uninsured children.”

To read more about the study, visit http://www.kff.org/insurance/7672/index.cfm. For information on health care options and cost-cutting tips for micro-businesses, visit the NASE Health Resource Center at http://health.nase.org/.