Health Insurance Premiums Increasing Much Faster Than Wages – Employee Contributions Higher At Bigger Companies

Health Insurance Premiums Increasing Much Faster Than Wages – Employee Contributions Higher At Bigger Companies

Dark line Premiums vs wages and inflation

(Best Syndication) The Kaiser Family Foundation surveyed employers and found that although health insurance premiums have been rising less rapidly recently, they are still outstripping wage increases. This affects the average worker’s ability to provide health insurance for his or her family.

The foundation looked at the high deductible plans and compared them with wages at 3,078 randomly selected public and private firms. This year was the forth consecutive year that the rate of increase in health insurance premiums has declined. But premiums still increased at a faster pace compared to wages.

The 2007 survey found that premiums increased an average of 6.1 percent (compared to 7.7 percent for 2006). This rate was nearly double the rate of increase in wages. Worker earnings rose only 3.7 percent, which was still ahead of the overall inflation rate of 2.6 percent.

So what are the average premiums? The foundation says that the average annual cost was $4,479 for single coverage and a staggering $12,106 for family coverage. Kaiser says that this does not “include any employer contributions to savings account options.”

The foundation found that the workers at smaller firms contributed less on average than the workers at the larger companies. For instance, a worker at a large company will contribute $694 for a single plan and $3,281 for the family plan. These figures are per year. In a small company the employee will contribute $561 for an individual plan and $759 for the family.

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By John Waters
Best Syndication News Business Writer

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