Health Insurance Costs Rise 10 Times Higher Than Income

Armen Hareyan's picture
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Health insurance costs have risen 10 times faster than income, urging the need of new health reforms to make the health care and health insurance more affordable for individuals, families and business groups.

A study by State Health Access Data Assistance Center at the University of Minnesota examined rising health insurance costs from 2001 to 2005 and found that although working families had a 3% increase in income, they also had a 30% increase in health insurance costs.

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The family health coverage costs increased during the period between 2001 and 2005 from $7898 to $10551 in California, from $8434 to $10846 in Minnesota, from $7322 to $10985 in Oklahoma, from $8255 to $11533 in Texas, from $8400 to $10850 in Florida. The average nationwide increase is accounted as $2500 for the mentioned period.

Rising health insurance costs between 2001 and 2005 resulted in serious problems for those working in private sectors. 30000 out of 3.6 million employers dropped health coverage they were providing as a benefit to employees. Because of the decline 4 million people working in private sectors and 2.4 million people with private insurance remained without coverage. This tendency may go on leaving people without coverage if health insurance costs keep rising.

America's Health Insurance Plans - a company representing all health insurance companies - stated that the study urges the need of giving health insurers the flexibility of including fewer mandated benefits in health care plans, which can decrease the premiums. A representative for the company also mentioned that the report urges the need of controlling rising costs for 'medicine, medical devices, and hospital care'.

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