Neb. health premiums growing faster than wages
Posted: Friday, October 24, 2008
LINCOLN, Neb. (AP) -- Health care premiums are rising faster than Nebraskans' wages at the same time they are bracing for a dip in the economy.
A study released on Thursday shows that family health insurance premiums in Nebraska grew 3.2 times faster than wages from 2000 to 2007, with no end to the increases in sight.
Both the total, average family premium in Nebraska and the portion paid by workers during the eight-year period rose by about 69 percent, according to the state-by-state study done by Families USA, a national health care advocacy group.
During the same period, median individual earnings rose a little more than 21 percent.
The study used data from the U.S. Census Bureau, the U.S. Department of Labor, and the U.S. Department of Health and Human Services.
"A bad situation is clearly getting worse," said Ron Pollack, executive director of Families USA.
However, the gap in Nebraska between earnings and premium growth is smaller than the national average.
According to the study, total family premiums paid by workers and employers together nationally rose more than 78 percent during the eight-year period while wages increased 14.5 percent. That means premiums rose 5.4 times faster than earnings.
Michigan had the biggest gap, with total, family coverage premiums paid by both workers and employers growing 17 times faster than earnings. Nevada, where premiums rose 2.5 times faster, had the smallest.
In Nebraska, annual health insurance premiums for family coverage in the 2000-2007 period rose from $6,760 to $11,434, or 69.1 percent, according to the study.
Employers' portion of those premiums rose from $4,847 to $8,210, an increase of 69.4 percent.
Workers' portion of the premiums rose from $1,913 to $3,224, an increase of 68.6 percent.
During the same period, the median earnings of Nebraska's workers increased from $21,255 to $25,802, an increase of 21.4 percent.
Workers paying for individual health coverage didn't fare much better than those paying for family coverage. Their portion of annual premiums rose from $580 to $929 over the eight years, an increase of 60 percent.
The portion paid by employers rose or 57.3 percent.
At the same time costs are rising, Pollack said, the study showed Americans are receiving less coverage with higher deductibles.
"People are paying more and more and are receiving less and less," he said.
On the Net:
Families USA: http://www.familiesusa.org
A study released on Thursday shows that family health insurance premiums in Nebraska grew 3.2 times faster than wages from 2000 to 2007, with no end to the increases in sight.
Both the total, average family premium in Nebraska and the portion paid by workers during the eight-year period rose by about 69 percent, according to the state-by-state study done by Families USA, a national health care advocacy group.
During the same period, median individual earnings rose a little more than 21 percent.
The study used data from the U.S. Census Bureau, the U.S. Department of Labor, and the U.S. Department of Health and Human Services.
"A bad situation is clearly getting worse," said Ron Pollack, executive director of Families USA.
However, the gap in Nebraska between earnings and premium growth is smaller than the national average.
According to the study, total family premiums paid by workers and employers together nationally rose more than 78 percent during the eight-year period while wages increased 14.5 percent. That means premiums rose 5.4 times faster than earnings.
Michigan had the biggest gap, with total, family coverage premiums paid by both workers and employers growing 17 times faster than earnings. Nevada, where premiums rose 2.5 times faster, had the smallest.
In Nebraska, annual health insurance premiums for family coverage in the 2000-2007 period rose from $6,760 to $11,434, or 69.1 percent, according to the study.
Employers' portion of those premiums rose from $4,847 to $8,210, an increase of 69.4 percent.
Workers' portion of the premiums rose from $1,913 to $3,224, an increase of 68.6 percent.
During the same period, the median earnings of Nebraska's workers increased from $21,255 to $25,802, an increase of 21.4 percent.
Workers paying for individual health coverage didn't fare much better than those paying for family coverage. Their portion of annual premiums rose from $580 to $929 over the eight years, an increase of 60 percent.
The portion paid by employers rose or 57.3 percent.
At the same time costs are rising, Pollack said, the study showed Americans are receiving less coverage with higher deductibles.
"People are paying more and more and are receiving less and less," he said.
On the Net:
Families USA: http://www.familiesusa.org
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