Premiums for employer-sponsored health insurance rose to $12,680 annually for family coverage this year Ð up 5 percent from last year, according to an annual study released Sept. 23 by the Kaiser Family Foundation.
Employees on average paid $3,354 out of their paychecks for healthcare coverage, and many more workers are now enrolled in high-deductible plans, according to the 2008 Employer Health Benefits Survey sponsored by Kaiser and the Health Research & Educational Trust (HRET).
Kaiser found the most dramatic shift in this year's survey came in small businesses (three to 199 workers), where more than one-in-three (35 percent) covered workers must pay at least $1,000 out of pocket before their plan will cover any healthcare expenses. According to the study, this is a 21 percent increase over last year.
For workers facing deductibles in Preferred Provider Organizations, the most common type of plan, the average deductible rose to $560 in 2008, up nearly $100 from 2007, the study showed.
According to the Kaiser, premiums have more than doubled since 1999, while workers' wages increased 34 percent and general inflation rose 29 percent during the same time.
Kaiser President and CEO Drew Altman said health insurance is steadily becoming less comprehensive. "It's no wonder that in today's tough economic climate many families count healthcare costs as one of their top pocketbook issues," he said.
John Combes, MD, HRET's interim president, said even modest increases in healthcare are posing problems for most families who now face high food and gas prices. "But rising health care costs are also a burden on employers, particularly small businesses," he added.
The annual Kaiser/HRET survey was conducted between January and May of 2008 and included 2,832 randomly selected, non-federal public and private firms with three or more employees. The annual percentage premium increase is calculated by comparing this year's average premium to last year's, a change in methodology designed to be more reflective of changes across the entire market.