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Study: the rising cost of health insurance

By KRIS HUNDLEY
Published September 27, 2006

Increases in health insurance premiums for working families slowed for the third straight year in 2006, but still rose at a rate more than double that of inflation and growth in workers' pay, an annual nationwide survey by the Kaiser Family Foundation shows. "Nobody's celebrating, and nobody should be celebrating," said Drew Altman, head of the foundation, a nonprofit organization that studies health care issues.

The workers' tab

Workers' share of health insurance premiums has remained about the same over time, with employees kicking in an average of 16 percent this year for individual coverage and 27 percent for a family policy. But with the total premium ballooning over time, so has the workers' contribution. And that does not include steadily increasing out-of-pocket co-pays for doctors and drugs.

Average employee's contribution to family coverage:

2006 $2,973

2000 $1,619

IT couldbeworse

In 2006, the increase in health insurance premiums continued a three-year decline. Competition among insurers and the absence of high-priced new drugs may account for the recent moderation in rate hikes, but experts warn the cycle is due for an uptick.

Average increases in health insurance premiums:

2006 7.7 percent

2005 9.2 percent

2004 11.2 percent

2003 13.9 percent

Source: 2006 Employer Health Benefits Survey of 3,159 employers by Kaiser Family Foundation and Health Research and Educations Trust.

[Last modified September 27, 2006, 01:10:24]