Washington, D.C. – Health care premiums rose an estimated 5.1 times faster than earnings for Illinois’ working families from 2000 to 2006, according to a report issued today by the consumer health organization Families USA. In that six-year period, health care premiums rose by 68.4 percent, while median earnings rose by only 13.5 percent.
The Families USA report is the first of its kind to document these changes on a state-specific basis. Among the key findings in the report are:
• For family health coverage provided through the workplace in Illinois, annual health insurance premiums in the 2000-2006 period rose from $7,220 to $12,159, an increase of $4,939, or 68.4 percent.
• Between 2000 and 2006, the median earnings of Illinois’ workers increased from $26,806 to $30,417 or 13.5 percent.
According to the report, the disproportionately high increases in insurance premiums occurred despite the provision of “thinner coverage” to workers—coverage that offers fewer benefits and/or that comes with higher deductibles, copayments, and co-insurance. As a result, Illinois’ families are paying more but receiving less health care coverage.
The Families USA report concludes that the confluence of higher health costs and stagnant wages is causing a growing number of Illinois families to join the ranks of the uninsured and underinsured. The number of non-elderly uninsured people in Illinois is nearly 1,765,000, approximately 15.9 percent of the non-elderly population.
“Illinois families have been hit hard in the pocketbooks due to skyrocketing health costs and stagnant wages,” said Ron Pollack, Executive Director of Families USA. “As a result, Illinoisans are paying much larger portions of their paychecks on health care, and health care is becoming less and less affordable.”
The key findings in the report provide data concerning premiums for family health coverage as well as individual coverage. They also break out the premium costs paid by employers and those paid by employees. The key findings include:
• For family health coverage in Illinois, the employer’s portion of annual premiums in the 2000-2006 period rose from $5,581 to $9,399, an increase of 68.4 percent.
• For family health coverage, the worker’s portion of annual premiums rose from $1,639 to $2,760, an increase of 68.4 percent.
• For individual health coverage, the employer’s portion of annual premiums rose from $2,432 to $3,570, an increase of 46.8 percent.
• For individual health coverage, the worker’s portion of annual premiums rose from $548 to $805, an increase of 46.8 percent.
According to the report, these fast-rising health care costs are causing increasing numbers of people to go into debt. The report cites a study that found that more than half of bankruptcies are now due, at least in part, to problems with medical costs.
“If this troubling trend continues, the health care affordability crisis will get much worse, and many more Illinoisans will become uninsured and underinsured,” said Pollack. “If earnings continue to lag behind fast-rising health care costs, Illinoisans will face diminishing economic and health security. It is high time for national leaders to address this growing problem and make it a top national priority.”
The Families USA report is based on data from the U.S. Census Bureau, the U.S. Department of Labor, and the U.S. Department of Health and Human Services.
