Increases in health insurance premiums are at their lowest rate in seven years, according to the eighth annual Henry J. Kaiser Family Foundation/Health Research and Educational Trust survey of employer-sponsored health plans. Premiums increased by 7.7% from spring 2005 to spring 2006, less than the 2005 increase of 9.2% and the recent peak of 13.9% in 2003. However, this year’s premium increase was more than double the overall 3.8% increase in wages and the 3.5% increase in the Consumer Price Index, according to the report, which was published as a Health Affairs web exclusive.
On average, employees contribute $627 a year for single coverage and $2,973 for family coverage. These contribution amounts represent 16% of the total premium for single coverage and 27% of the premium for family coverage. Despite attention from the media and health policy community, few employers offer high-deductible health plans with savings options. The survey reported that 7% of employers offered these plans in 2006. More widespread use of high-deductible plans could extend the downward trend in premiums, but the survey authors said it remains to be seen whether they will attract large numbers of employers and employees. Read the report.
Read the latest report from the PATIENT FRIENDLY BILLING® project: Consumerism in Health Care.
Read "Don't Celebrate Yet" on HFMA Views for responses to the Kaiser Foundation report.
