Health insurance premiums jump again

Washington -- The fourth consecutive year of double-digit increases in workers' health insurance premiums portends more bad news in terms of the number of Americans without coverage, health experts said at a recent briefing.

"Health insurance is becoming increasingly unaffordable in our country," said Drew Altman, PhD, president and CEO of the Kaiser Family Foundation. "We unfortunately should expect to see the ranks of the uninsured continue to tick up." The Census Bureau recently announced that the number of Americans lacking health coverage reached 45 million in 2003.

With states still facing budget trouble, they won't be able to expand their Medicaid and children's health insurance programs to pick up the slack, Dr. Altman said.

"That safety net isn't there as it was in some past years to catch a lot of people," he said.

According to a survey conducted by the Kaiser Family Foundation and the Health Research and Educational Trust, premiums for employer-sponsored health insurance rose 11.2% this year -- about five times inflation and growth in workers' earnings. Although the premium increase is lower than it has been in the past few years, the overall trend is harming health care access, said Mary Pittman, the trust's president.

This year, average annual premiums reached $9,950 for family coverage and $3,695 for individuals. Workers' share of health insurance costs have jumped 60% since 2000, Dr. Altman said.

"It's these out-of-pocket costs which really are what's driving voter concern about health in this election," he said. Voters' worries probably won't be resolved any time soon, he added.

"It doesn't seem like anybody really feels that we have any big answers right now," Dr. Altman said. Instead, employers are turning toward disease management, consumer-driven health care and greater cost sharing from workers even though they don't have much confidence that these steps will have a big impact.

On the campaign trail, both presidential candidates responded to the report by discussing their plans to cut health care costs. President Bush promoted his proposal to allow federally regulated association health plans, and to help people and small businesses use health savings accounts. Sen. John Kerry (D, Mass.) touted his plan to give tax credits to small businesses and low-income people to buy into health coverage like that of congressional lawmakers and to allow prescription drug reimportation.