Dealing With Policy Cost Increases
If you're making anywhere near the average income in the United States, you've likely been feeling the numbers crunch over the past year. Gas prices go up on a daily basis, you're paying double for many important groceries, and health insurance is becoming increasingly unaffordable, even for those who get it through their employers. For most families, having well-appointed policies is a must and there are rarely any less expensive options than those offered through their companies. The Robert Wood Johnson Foundation recently released a study that showed just how much prices are increasing, while income has barely increased at all. Should the costs of having a policy continue to go up without a major improvement in income, the study warns that we'll soon see many workers go uninsured. Clearly a change is in order, but will we see one anytime soon? With no apparent changes on the horizon, it's highly recommended that you plan for more cost increases in the future. Here's a look at some of the key findings in the Robert Wood Johnson Foundation's report.
Key Findings
- The average amount that employers pay for their employee's family health coverage has increased over 25% over the past several years, from $6,360 to currently over $8,000.
- While companies may be paying more for a policy, it's the employees that are really shouldering the load. Nation wide, the amount that workers pay for their family coverage has increased over 30% since 2001. The average worker is now paying close to $11,000 for their coverage.
- Despite the sky rocketing rates, employee salaries have only risen 3% during the same period. That won't even cover the rising prices of gas and food, let alone rising premiums.
- Over three-fourths of all people who have plans in the United States get it from their employer or a family member's employer. One can logically assume that the more companies have to pay, the more employees will end up paying for it as well.
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