Hikes on health insurance premiums and deductibles have been accelerating for the privately insured since 2003, far outpacing middle- and low-income growth, according to a report by The Commonwealth Foundation.
Premiums for employer-based family insurance plans increased an average of 62 percent between 2003 and 2011, while deductibles grew 117 percent on average at firms of all sizes, according to the report released yesterday. The result is higher costs to workers who must clear higher deductibles.
The Commonwealth Foundation said in the report that President Barack Obama's Patient Protection and Affordable Care Act should help to improve coverage and moderate cost-increases when it goes into effect in 2014, but it went on to advise that a slowing of premium growth by one percent would yield annual savings of $2,029 to employers and families by 2020. A 1.5 percent reduction in premium growth would save almost $3,000 annually by the same year.
The report found the U.S. average premium cost for family coverage in 2011 was $15,022, but could spike to $24,740 by 2020 at the current rate of increase. Geographically, 80 percent of the nation's under-65 population live in regions where premiums account for 20 percent or more of income.
Inflation in Health Benefits Highest Since 2004; Deductibles Reach $1,20
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Premiums for employer-based family insurance plans increased an average of 62 percent between 2003 and 2011, while deductibles grew 117 percent on average at firms of all sizes, according to the report released yesterday. The result is higher costs to workers who must clear higher deductibles.
The Commonwealth Foundation said in the report that President Barack Obama's Patient Protection and Affordable Care Act should help to improve coverage and moderate cost-increases when it goes into effect in 2014, but it went on to advise that a slowing of premium growth by one percent would yield annual savings of $2,029 to employers and families by 2020. A 1.5 percent reduction in premium growth would save almost $3,000 annually by the same year.
The report found the U.S. average premium cost for family coverage in 2011 was $15,022, but could spike to $24,740 by 2020 at the current rate of increase. Geographically, 80 percent of the nation's under-65 population live in regions where premiums account for 20 percent or more of income.
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