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Workers paying more for employer-sponsored health care

(September 2nd, 2010 @ 11:06am)

If your employer provides health insurance, you've likely seen a cost increase for your share of the bill.

A new study shows more employers are shifting more of the costs to employees, according to the The Washington Post.

The newspaper found that the cost of employer-sponsored family rose an average of 13.7 percent. Moreover, 30 percent of employers who provide benefits reported reducing benefits or increasing the employees' share of the cost.

For family coverage, workers are paying an average of $3,997, up $482 from last year, while employers are paying an average of $9,773, down $87, according to the survey by the Kaiser Family Foundation and the Health Research & Educational Trust.

With so many people out of work, employees have little recourse but to accept the price increases said the groups behind the study.

Overall, premiums for employer-sponsored coverage - the amounts paid by employer and employee combined - rose an average of 3 percent for family coverage and 5 percent for single coverage, the survey found. That was modest by historical standards. But the costs fell disproportionately on employees.

Workers with family coverage pay an average of 30 percent of the premium, compared to 27 percent last year. Workers paying for single coverage pay an average of 19 percent of the premium, compared to 17 last year.

Kaiser Family Foundation President Drew Altman said in an email that making employees pay more of the costs comes from the employer's "recession survival kit." He said the Obama health care legislation is "the only thing we have coming on line as a country to control costs" in the private sector besides shifting costs to employees.

The newspaper reports that since 2005, overall premiums have gone up 27 percent. But employees' premium payments have increased 47 percent. Also, in that same period, wages have increased 18 percent.

The survey included employers with with or more workers.

Read the full story from The Washington Post.


Last 5 Comments

  • Reply Abuse Vote
    Health care
    healthreform
    As a senior who has seen many presidents I can tell you that this is because the system is completely broken. If the drug makers control the supply and prices(as they really do) They will always be the winners!!! The drug makers control all health care and the average person is at their mercy. A filmmaker has been reversing diabetes in many people worldwide WITHOUT DANGEROUS DRUGS and the drug maker do not promote this to the people just google SPIRIT HAPPY DIET
  • Reply Abuse Vote
    No Chit
    RubyDog
    Since 1999 when it first started to spiral out of control. CNN report before Obama care that Blue-Cross out of Cal was predicting a 40% increase no matter if Obam care passed or not. Now all the greedy phaqs in this country are raising rates just for greed and they have someone to blame. I hope all healthcare ins can still maintain their 9 billion dollars profit are our expense.
  • Reply Abuse Vote
    High Rates.
    thatsfunny
    good news if you have a child or spouse that had a pre-existing condition they can now go on your policy, But now all employees premiums are going up to cover the risk, just because the insurance companies have to insure the people with pre-existing conditions,They do not have to eat the costs We get to do that and then we will have to pay for the trillions of dollars spent on this program with our taxes,So now for a family pol.My pre tax amount will be $1100 a month,our pay is down and costs are up ..thanks Obama
  • Reply Abuse Vote
    this says it all
    Iamtiredofit
    "Fathom the odd hypocrisy that Obama wants every citizen to prove they are insured, but people don't have to prove they are citizens."
  • Reply Abuse Vote
    But....but....but.....
    Legal_or_Leave
    Obama was supposed to fix that! His Holiness and Mightiness Obama was going to fix everything with his much-vaunted Obamcare! You mean.....he LIED???? Gee....if you think his insurance increase is expensive, wait'll Obamacare kicks in! Besides the crushing tax burden you'll have to pay between $400 - $800/month in premiums for your "free" health care. Nice going, suckers!
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