Health Care Premiums Rose Nearly Five Times Faster than Earnings in New Hampshire from 2000 to 2007

New Hampshire-Specific Report Finds that Premiums Rose by 78.9 Percent While Earnings Rose by Only 16.1 Percent

Washington, D.C.—Family health care premiums rose an estimated 4.9 times faster than earnings for New Hampshire’s workers from 2000 to 2007, according to a report issued today by the consumer health organization Families USA. In that eight-year period, family health care premiums rose by 78.9 percent, while median earnings rose by only 16.1 percent.

The Families USA report for New Hampshire updates its 2006 report, which was the first of its kind to document these changes on a state-specific basis. Among the key findings in the new report are:

• For family health coverage provided through the workplace in New Hampshire, annual health insurance premiums in the 2000-2007 period rose from $7,525 to $13,460—an increase of $5,935, or 78.9 percent.

• Between 2000 and 2007, the median earnings of New Hampshire’s workers increased from $27,226 to $31,596—an increase of $4,370, or 16.1 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, New Hampshire families are paying more but receiving less in health coverage.

The Families USA report concludes that the confluence of higher health costs and slow wage growth is causing a growing number of New Hampshire families to join the ranks of the uninsured and underinsured. The number of non-elderly uninsured people in New Hampshire is approximately 142,000, which is 12.4 percent of the non-elderly population.

“Skyrocketing health care costs were a problem in New Hampshire before the current economic downturn, and slow wage growth or job losses now only make matters worse,” said Ron Pollack, Executive Director of Families USA. “As health care becomes less and less affordable, Granite Staters face difficult choices in trying to provide health coverage for themselves and their families. A bad situation is clearly growing worse.”

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 New Hampshire, the employer’s portion of annual premiums in the 2000-2007 period rose from $5,772 to $9,933—an increase of $4,162 or 72.1 percent.

• For family health coverage, the worker’s portion of annual premiums rose from $1,753 to $3,526—an increase of $1,773 or 101.1 percent.

• For individual health coverage, the employer’s portion of annual premiums rose from $2,321 to $3,840—an increase of $1,519 or 65.4 percent.

• For individual health coverage, the worker’s portion of annual premiums rose from $469 to $1,064—an increase of $595, or 127 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 Granite Staters will become uninsured and underinsured,” said Pollack. “If earnings continue to lag behind fast-rising health care costs, Granite Staters will face diminishing economic and health security.

“In their daily efforts to make ends meet, particularly in these difficult economic times, families in New Hampshire know that health care is one of the top issues facing our nation. This is just one more reason why health care is going to be one of the top issues on the minds of voters when they go to the polls in November.”

“These huge increases in premiums are a disincentive that hurts New Hampshire businesses and families who simply want get their employees covered and to be able to take their kids to a doctor when they need to. Small businesses are the backbone of the New Hampshire economy, and hardworking employers and employees need practical and sensible solutions for quality, affordable health care," said Annie Farnsworth, Ph.D., Executive Director of New Hampshire Voices for Health. 

"New Hampshire Voices for Health is a network of consumer and advocacy organizations representing hundreds of thousands of citizens who believe that by working together with businesses and policy makers, we can find can find better options for Granite Staters to secure affordable, quality healthcare that works for New Hampshire.”

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.

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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