Nearly 3.9 Million Floridians Are in Families that Will Spend More than 10 Percent of Their Income on Health Care Costs in 2008

Vast Majority (79.7 Percent) of Florida Families Facing High Health Care Costs Have Insurance

Washington, D.C. – While much national attention has focused on the uninsured, there is an almost invisible but growing crisis among insured families, as rising health care costs devour an ever-growing portion of their pre-tax income. In Florida alone, 3,873,000 people under the age of 65, 79.7 percent of whom are insured, are in families that will spend more than 10 percent of their pre-tax family income on health care costs in 2008, according to a report issued today by the consumer health organization Families USA.

In addition, there are 1,210,000 Floridians in families that will spend more than 25 percent of their pre-tax income on health care costs in 2008.

Health care is the top domestic concern among voters in the upcoming elections. This new report is designed to project how significant health care costs will be for family budgets when voters go to the polls in 2008. 

The Families USA report is the first of its kind to document these costs on a state-specific basis. The key findings in the report show that high health care costs are not just a problem of the uninsured. More and more families with insurance are affected by rising health care costs, and, for many, the burden of these costs has become too great to bear.

The key findings in the report look at the number of people in families that spend more than 10 percent of their pre-tax income on health care costs:

• In 2000, 2,405,000 non-elderly Floridians were in families that spent more than 10 percent of their pre-tax income on health care costs.

   

• Between 2000 and 2008, the number of people in families spending more than 10 percent of their pre-tax income on health care costs will have increased by 1,468,000. This increase is greater than the population of the greater Jacksonville metropolitan area.

   

• Nearly four out of five people (79.7 percent) in families spending more than 10 percent of their pre-tax income on health care costs are insured.

   

• 3,087,000 non-elderly Floridians with insurance are in families that will spend more than 10 percent of their pre-tax income on health care costs in 2008.

The report also looks at the number of people in families that spend more than 25 percent of their pre-tax income on health care costs:

• In 2000, 710,000 Floridians were in families that spent more than 25 percent of their pre-tax income on health care costs.

   

• Between 2000 and 2008, the number of people in families spending more than 25 percent of their pre-tax income on health care costs will have increased by 501,000. This increase is equal to twice the size of the entire population of St. Petersburg.

   

• Nearly three out of four people (73.0 percent) in families spending more than 25 percent of their pre-tax income on health care costs are insured.

   

• 883,000 Floridians with insurance are in families that will spend more than 25 percent of their pre-tax income on health care costs in 2008.

As the Families USA report demonstrates, thousands of Floridians are in families that face high health care costs. A number of factors have driven this phenomenon. First and foremost, health insurance premiums are increasing. As premiums rise, employers are forced to make tough decisions about the coverage they offer to their employees: some drop coverage, others increase the share of the premium that employees must pay, and more offer insurance that covers fewer services and/or requires high out-of-pockets costs. As a result, Florida families must shoulder a greater portion of health care costs.

“Florida families are hit hard in the pocketbooks due to skyrocketing health costs,” said Ron Pollack, Executive Director of Families USA. “As a result, Floridians are spending much larger portions of their family incomes on health care costs—and health care is becoming less and less affordable.”

"The Families USA report aptly points out that we do not only have a problem with the some 47 million Americans who are uninsured, but we also have a problem with the large number of people and families who are underinsured," said Congressman Allen Boyd (D-FL). "Ensuring that all Floridians have access to quality, affordable healthcare is one of my top priorities in Congress, and I hope that this report will bring attention to the need for a more thoughtful and productive conversation on the local, state, and federal level about how we can work together to address this problem."

According to the report, these fast-rising health care costs are forcing increasing numbers of people to look for new ways to pay for care. With the majority of doctors' offices and hospitals now accepting payment by credit card, paying for health services via credit card is becoming increasingly common. Recent data show that more than one in four people with insurance report having trouble paying their medical bills or say that they are in the process of paying off medical debt.

“If this troubling trend continues, the health care affordability crisis will get much worse, and many more Floridians will become uninsured and underinsured,” said Pollack. “The high health care costs faced by families are a clear indication that insurance simply no longer offers the protection that America’s families need.”

To determine how many Floridians are in families that face health care costs in excess of 10 and 25 percent of pre-tax family income in 2000 and 2008, Families USA asked The Lewin Group to analyze data from the U.S. Department of Health and Human Services and the U.S. Census Bureau.

PDF of full report

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

1201 New York Avenue NW, Suite 1100 · Washington, DC 20005
202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org