Healthcare Premiums Expanding Faster Than Wages

By: John Mangan, Cincom Systems

In Michigan, healthcare premiums rose more
than 17 Times Faster than Earnings

We are getting used to the frequent references to soaring healthcare costs in the US where 55 % of those with healthcare insurance report that they are experiencing higher costs. I’m almost immune to these oft-quoted numbers. Whereas troubling, you get used to them after awhile.

But an October 2008 report of soaring healthcare premiums in Michigan woke me up. The premiums Michigan workers pay for healthcare rose 17 times faster than their wages from 2000 – 2007.

According to a Families USA study Premiums versus Paychecks:
A Growing Burden for Michigan’s Workers, median earnings in Michigan rose 4.6% in the first eight years of the millennium compared to the worker’s share of the healthcare premium which went up 78.2% (17.1 times wage increases).. That’s hard to imagine, but it gets worse.

• Actual wages may have gone up a puny 4.6 % from 2000-20007, but real wages (wages adjusted for inflation) didn’t go up at all.

• And today’s higher premiums get you less benefits with higher deductibles, copays, and co-insurance.

Compound that with rapidly rising fuel, food, and education costs and it’s a wonder anyone in Michigan ever gets out of bed.

Check out healthcare costs in you own state
The Families USA report, Premiums versus Paychecks, is based on data from the U.S. Census Bureau, the Department of Labor, and the Department of Health and Human Services. You can access reports specific to your state, just click on (Access the reports).

Comments

[Oscar Gonzalez]

Is this a sign of complacency from insurers and providers? Rather than increasing their efficiency they seem more willing to pass the extra costs to the consumer.