Why don't I throw some more wood into the fire that is the debate of healthcare!

The National Coalition
on Health Care
1200 G Street, NW,
Suite 750
Washington, DC 20005

202.638.7151

www.nchc.org
info@nchc.org

This document is also available as a printable .pdf file.
Health Insurance Cost

Facts on the Cost of Health Care



Introduction

By several measures, health care spending continues to rise at the fastest rate in our history.

In 2005 (the latest year data are available), total national health expenditures rose 6.9 percent -- two times the rate of inflation (1). Total spending was $2 TRILLION in 2005, or $6,700 per person (1). Total health care spending represented 16 percent of the gross domestic product (GDP).

U.S. health care spending is expected to increase at similar levels for the next decade reaching $4 TRILLION in 2015, or 20 percent of GDP (2).

In 2006, employer health insurance premiums increased by 7.7 percent – two times the rate of inflation. The annual premium for an employer health plan covering a family of four averaged nearly $11,500. The annual premium for single coverage averaged over $4,200 (3).

Experts agree that our health care system is riddled with inefficiencies, excessive administrative expenses, inflated prices, poor management, and inappropriate care, waste and fraud. These problems significantly increase the cost of medical care and health insurance for employers and workers and affect the security of families.



National Health Care Spending

In 2005, health care spending in the United States reached $2 trillion, and was projected to reach $2.9 trillion in 2009 (2). Health care spending is projected to reach $4 trillion by 2015 (2).
Health care spending is 4.3 times the amount spent on national defense (4).
In 2005, the United States spent 16 percent of its gross domestic product (GDP) on health care. It is projected that the percentage will reach 20 percent in the next decade (2).
Although nearly 47 million Americans are uninsured, the United States spends more on health care than other industrialized nations, and those countries provide health insurance to all their citizens (4).
Health care spending accounted for 10.9 percent of the GDP in Switzerland, 10.7 percent in Germany, 9.7 percent in Canada and 9.5 percent in France, according to the Organization for Economic Cooperation and Development (5).
Employer and Employee Health Insurance Costs

Premiums for employer-based health insurance rose by 7.7 percent in 2006. Small employers saw their premiums, on average, increase 8.8 percent. Firms with less than 24 workers, experienced an increase of 10.5 percent (3)
The annual premium that a health insurer charges an employer for a health plan covering a family of four averaged $11,500 in 2006. Workers contributed nearly $3,000, or 10 percent more than they did in 2005 (3).The annual premiums for family coverage significantly eclipsed the gross earnings for a full-time, minimum-wage worker ($10,712).
Workers are now paying $1,094 more in premiums annually for family coverage than they did in 2000 (3).
Since 2000, employment-based health insurance premiums have increased 87 percent, compared to cumulative inflation of 18 percent and cumulative wage growth of 20 percent during the same period (3).
Health insurance expenses are the fastest growing cost component for employers. Unless something changes dramatically, health insurance costs will overtake profits by 2008 (6).
According to the Kaiser Family Foundation and the Health Research and Educational Trust, premiums for employer-sponsored health insurance in the United States have been rising four times faster on average than workers' earnings since 2000 (3).
The average employee contribution to company-provided health insurance has increased more than 143 percent since 2000. Average out-of-pocket costs for deductibles, co-payments for medications, and co-insurance for physician and hospital visits rose 115 percent during the same period (7).
The percentage of Americans under age 65 whose family-level, out-of-pocket spending for health care, including health insurance, that exceeds $2,000 a year, rose from 37.3 percent in 1996 to 43.1 percent in 2003 – a 16 percent increase (8).
The Impact of Rising Health Care Costs

National surveys show that the primary reason people are uninsured is the high cost of health insurance coverage (9).
Economists have found that rising health care costs correlate to drops in health insurance coverage (10).
Nearly one-quarter (23 percent) of the uninsured reported changing their way of life significantly in order to pay medical bills (10).
Almost 50 percent of the American public say they are very worried about having to pay more for their health care or health insurance, while 42 percent report they are very worried about not being able to afford health care services (11).
In a poll conducted by the Harvard School of Public Health, 43 percent of respondents named high costs as one of the two most important health care issues for government to address (12).
In a USA Today/ABC News survey, 80 percent of Americans said that they were dissatisfied (60 percent were very dissatisfied) with high national health care spending (13).
One in four Americans say their family has had a problem paying for medical care during the past year, up 7 percentage points over the past nine years. Nearly 30 percent say someone in their family has delayed medical care in the past year, a new high based on recent polling. Most say the medical condition was at least somewhat serious (13).
A recent study by Harvard University researchers found that the average out-of-pocket medical debt for those who filed for bankruptcy was $12,000. The study noted that 68 percent of those who filed for bankruptcy had health insurance. In addition, the study found that 50 percent of all bankruptcy filings were partly the result of medical expenses (14). Every 30 seconds in the United States someone files for bankruptcy in the aftermath of a serious health problem.
One half of workers in the lowest-compensation jobs and one-half of workers in mid-range-compensation jobs either had problems with medical bills in a 12-month period or were paying off accrued debt. One-quarter of workers in higher-compensated positions also reported problems with medical bills or were paying off accrued debt (15).
If one member of a family is uninsured and has an accident, a hospital stay, or a costly medical treatment, the resulting medical bills can affect the economic stability of the whole family (16).
A new survey shows that more than 25 percent said that housing problems resulted from medical debt, including the inability to make rent or mortgage payments and the development of bad credit ratings (17).
A survey of Iowa consumers found that in order to cope with rising health insurance costs, 86 percent said they had cut back on how much they could save, and 44 percent said that they have cut back on food and heating expenses (18).
Retiring elderly couples will need $200,000 in savings just to pay for the most basic medical coverage (19). Many experts believe that this figure is conservative and that $300,000 may be a more realistic number.
Time for Action on Reining in Health Care Costs

Policymakers and government officials agree that health care costs must be controlled. But they disagree on the best ways to address rapidly escalating health spending and health insurance premiums. Some favor price controls and imposing strict budgets on health care spending. Others believe free market competition is the best way to solve the problems. Public health advocates believe that if all Americans adopted healthy lifestyles, health care costs would decrease as people required less medical care.

There appears to be no agreement on a single solution to health care's high price tag. Many approaches may be used to control costs. What we do know is if the rate of escalation in health care spending and health insurance premiums continues at current trends, the cost of inaction will severely affect employer's bottom lines and consumer's pocketbooks.

The cost has already caused a lot of employers to close down due to the health costs or make radical changes just to keep up with the rising costs.

My medical expenses for the year were about 7 bucks. I had to buy some Nyquil for my kid. It was pretty tough spending so much. I was looking at the Walgreens equivalents and thinking if I should save the 2 bucks or just go hog wild and spend the whole 7 dollars in one whack. Then I found a sale where I could get 2 for 1, so I got a bottle of Nyquil and a bottle of Dayquil, all for one price of 7 bucks. A three year supply. Imagine that.

The year isn't over yet though. My costs for the year could go way up to 10 bucks if I have to buy some aspirin.

Don't ask me to pay your medical bills. I can't afford you.

Watch your sarcastic words Philly, you may regret it. Your getting older and therefore more prone to disease and injury. 7 bucks of Nyquil won't treat a heart attack, prostate cancer, erectial disfunction, or nor does 7 bucks buy any amount of healthcare insurance.

Though 7 buck might get you some type of Colonial Penn Life insurance but that just to bury you. Not to take care of you love ones.

Ah, the big debate. My opinion stands as followed: I consider myself a democrat, and as a democrat I agree with the goal to achieve a universal health coverage- which quite frankly republicans do not. We should expand government health insurance programs and give the federal government a greater role in order to expand the insurance industry. There have been plans proposed by some leading democrats such as Hilary Clinton, Barack Obama, and John Edwards that fail to touch a few topics though- that underlying issue being that they fail to provide a good solution to the increasing costs that in turn drive up health insurance. All the proposed plans do acknowledge the need to restrain cost, but are highly unlikely to happen. In my humble opinion I believe that a change needs to be made. I.E. forcing people to use health maintenance organizations, limiting expensive new technologies, and cutting reimbursements to doctors and hospitals. Also, if we do decide upon universal coverage, how exactly are we going to finance it? I’d agree upon imposing higher (but not drastically higher) taxes on everyone, and not just the wealthy, to finance it.

That's ok fitness, I have friends in the industry.

Do you have any idea what percentage of the population eventually winds up in an extended medical care facility funded primarily by government money? When they get there the government essentially takes all of their wealth and then picks up the tab for their care from that point forward. Its not a pretty sight. Families are devastated and left essentially in poverty as the patriarch forfeits all his wealth.

Ultimately we are not in control of our fate where that sort of thing is concerned. Most of the world is uninsured. Some countries cover their people fully with inadequate health care services. There are not a lot of good options. Health education seems the best bet for my money.

At some point if you take all of everybody's money and give it to someone else, nobody will want to work anymore. Then you will be in a financial hell.

Right now, today, I am working on advances in medical science. (this is break time) I work a lot and I build stuff that will help you, or your friends or relatives. I get paid for the products I develop. Read Ayn Rand's book Atlas Shrugged. At some point the best will walk.

Don't ask what I am building. It is proprietary technology. Usually my projects are confidential.

You work in medical science? I see you're in the pocket of Big Corporation who only look for high profit margins. No wonder you don't care for medical care for everyone. Your looking to hold the bag of cash in you hand and let everyone else struggle for your "advances in medical science."

Phil you don't care about people only money!

Phil what ever the hell you're working on for "advances in medical science" I would bet it is not a cure for anything. The sad truth is the is no money in a cure. If people had a cure and there was no disease then there is no profit for Big Corporation.

But say you instead develop medications that only treat the disease then you and your BIG CORPORATE friends can have a life long customer who would have no choice to pay exorbirant prices for your supposed "advance in medical science."

No, I develop medical devices. Look it up. The stuff I do helps to patch up the people who did not take care of their health in some cases and the people with special needs in other cases.

How you propose to know what I care about is beyond me. As a fact I happen to take my work seriously for the sake of those who might need the devices. Someday you may need one as well. Most of the work I do is for small corporations, struggling to make their mark in the field of medical science and to make a difference in the lives of people.

Its easy for someone like you who considers 35 billion to be chump change to criticize me about whether I might have an interest in money. I do not think you are well connected with the real world.

Sir then why are you so against people have healthcare. There are 47 million American off without healthcare coverage. Other industrial nations have all of their citizens and if you look at my orignal post there is a growing trend that companies are increasing the premiums at 2x times national inflation rate. Even your small company will feel the pinch. They'll have to increase your premiums until your off of healthcare like your fellow 47 million Americans.

Fitness.......why? You Slam every Conservative View Related to Hugo Chaves by Chance....??

Because I care for people not for money X.
If you look original post of the nations that provide national healthcare, France, Germany, and (for God's sake) even Canada take care of their own. This not communist thing here it just the nation taking care of their own workforce.

Fitness, I hear France, Germany and Canada are still accepting immigrants have you ever thought of moving.

The United State is comdemming illegals aliens but of course secretly we look the other way because we need them as cheap labor. The sad thing is that companies hire illegals as labor because then they won't have to pay for health insurance.

philosopher...LMAO!! that nyquil comment was funny!! In reality fitness americans are NOT turning their heads. Once the illegals are HERE the laws are not on the books to DEPORT them. At least not here in TN. Sadly we are really being INVADED and its time the LAWS CHANGE.

The healthcare problem was aptly summed up by Bill Maher a couple of months ago. WE EAT CRAP! Most of the things we are putting into our bodies we have little or no knowledge of how they got from the plant or animal to your dinner plate, happy meal, or popsicle stick. We buy diet food only because it says it's lean cuisine. We think/assume that some huge corporation is primarily concerned with its mass-produced conveyor belt grub being totally ok to eat all the time with no bad side effects (obesity, cancer, heart disease etc.). We sit around and watch tv instead of going outside and exercising. Roughly 2/3 of our problems could be alleviated if we stopped eating pre-processed, pesticide laden, chemical additives, Genetically Modified, high fructose corn syrup havin', JUNK! And wake up people, putting health care in the hands of a bureaucrats and their Big Pharmaceutical company lackeys is not the answer. Neither Big Business or Government is the answer to this equation. Charity, responsibility, free markets, and alternative medicine is where the solutions are to be found. Just ask Ron Paul, he's a doctor.