More than 4 Million Floridians Are in Families that Will Spend More than 10 Percent of Their Income on Health Care in 2009

77 Percent of Floridians in Families Facing High Health Care Costs Have Insurance, and the Number Has Increased by 70 Percent Since 2000

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 Florida alone, almost 4.1 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 77.1 percent of those Florida families have insurance. In addition, there are nearly 1.3 million Floridians 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 Florida, a symptom of the runaway costs plaguing the U.S. health care system.

The report reveals:

• Approximately 4.1 million non-elderly Floridians 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 nearly 1.7 million, or 69.9 percent.

• Almost four out of five (77.1 percent) people in families spending more than 10 percent of their pre-tax income on health care are insured.

• Nearly 3.2 million non-elderly Floridians 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:

• Nearly 1.3 million Floridians 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 573,000, or 80.8 percent.

• More than two out of three (70 percent) people in families spending more than 25 percent of their pre-tax income on health care are insured.

• 898,00 Floridians 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 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, 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, Florida families must shoulder a greater portion of health care costs.

“Florida families are hit hard in the wallet because of skyrocketing health costs,” Pollack said. “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 increasing burden of health care costs on Florida families is a clear signal that health care reform is overdue,” Pollack said.

“As the Families USA report shows, the exploding cost of health care is an issue that deeply affects the lives of all Americans, but its impact on Florida's families who have health insurance is especially troubling,” said U.S. Rep. Kathy Castor (D-FL), a member of the House Energy and Commerce Committee. “As a nation, we must place a greater priority on controlling spiraling health care costs and extending affordable health coverage to all of our citizens.”

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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