Washington, D.C.—A report released today by the consumer health organization Families USA spotlights a growing crisis among insured families, as rising health care costs devour a growing portion of their pre-tax income.
In the United States, 64.4 million people under age 65 are in families that will spend more than 10 percent of their pre-tax family income on health care in 2009, and 82.6 percent of those people are insured—an increase of 22.7 million such people since 2000.
In Pennsylvania alone, 2,328,000 under age 65 are in families that will spend more than 10 percent of their pre-tax family income on health care in 2009, and 88.3 percent of those Pennsylvania families have insurance. In addition, there are 628,000 Pennsylvanians in families that will spend more than 25 percent of their pre-tax income on health care in 2009.
“As our findings make clear, high health care costs are not just a problem of the uninsured,” Ron Pollack, Executive Director of Families USA, said today. “More and more families with insurance are affected by rising health care costs, and, for many, the burden of these costs is becoming too great to bear.”
That this problem is affecting more and more families is an essential element of this 2009 report, an update of a 2007 Families USA report that was the first of its kind to document these costs on a state-specific basis. The report shows that the number of insured people in families paying 10 or 25 percent of their pre-tax income on health care has climbed dramatically in Pennsylvania, a symptom of the runaway costs plaguing the U.S. health care system.
The report reveals:
• 2,328,000 non-elderly Pennsylvanians are in families that will spend more than 10 percent of their pre-tax income on health care in 2009.
• Between 2000 and 2009, the number of people in families spending more than 10 percent of their pre-tax income on health care will have increased by 460,000, or 24.6 percent.
Nearly nine out of 10 people (88.3 percent) in families spending more than 10 percent of their pre-tax income on health care are insured.
• 2,056,000 non-elderly Pennsylvanians with insurance are in families that will spend more than 10 percent of their pre-tax income on health care in 2009.
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:
• 530,000 Pennsylvanians are in families that will spend more than 25 percent of their pre-tax income on health care in 2009.
• Between 2000 and 2009, the number of people in families spending more than 25 percent of their pre-tax income on health care will have increased by 137,000, or 27.9 percent.
More than eight out of 10 people (84.4 percent) in families spending more than 25 percent of their pre-tax income on health care are insured.
• 628,000 Pennsylvanians with insurance are in families that will spend more than 25 percent of their pre-tax income on health care in 2009.
As the Families USA report demonstrates, millions of Pennsylvanians 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, particularly in this recession, 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-pocket costs. As a result, Pennsylvania families must shoulder a greater portion of health care costs.
“Pennsylvania families are hit hard in the wallet because of skyrocketing health costs,” Pollack said. “As a result, Pennsylvanians are spending much larger portions of their family incomes on health care costs—and health care is becoming less and less affordable.
“The growing burden of health care costs on Pennsylvania families is a clear signal that health care reform is overdue,” Pollack said.
"This report shows the health care crisis is not just about the uninsured or other vulnerable populations," said Senator Robert P. Casey, Jr. "We have 2.3 million Pennsylvanians under the age of 65 who will spend more than 10 percent of their pre-tax income on health care costs, and these people have insurance. In total, nearly nine out of 10 Pennsylvanians who will spend more than 10 percent of their pre-tax income on health care have health insurance. As a member of the HELP Committee, we are working hard to address this growing crisis with health care reform this year."
“The fact that many Americans have health insurance and are still being overwhelmed by skyrocketing health care costs is another reminder of why we need comprehensive health care reform,” Congressman Jason Altmire, co-chair of the New Democrat Coalition Health Care Task Force, said. “I will continue to work with my colleagues to find ways in which we can lower health care costs and improve Americans’ access to quality, affordable care.”
