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The Burden of Health Insurance Premium Increases on American Families

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Topics: Employer-Sponsored Coverage | Individual Coverage | Out-of-Pocket | Spending | State Data

On September 22, the Executive Office of the President released a report compiled by the National Economic Council, which documents the rising cost of health insurance premiums at both the national and state levels.  The report notes that from 1999 to 2009, premium increases ranged from 88 percent in Michigan to 145 percent in Alaska; however, wages and inflation increased by 38 and 28 percent respectively over the same time.  The report also examines recent actions by State Insurance Commissioners to reduce premium increases.

From the executive summary:

The unrelenting upward trend in health care premiums is evident at the state level as well. Health insurance premiums are highly variable across the country, with states experiencing premium growth of between 90% to nearly 150% over the past decade. These differences lead to inequities for families and businesses as well as underlying differences in the uninsured across states. However, across all states, the rise in health insurance premiums is burdening families and threatening our economy. In every state, premiums have increased faster than wages and in every state, family budgets are consumed by an increasing share of healthcare premiums.

Full report: The Burden of Health Insurance Premium Increases on American Families (PDF | 303.3 KB)

National Economic Council, Executive Office of the President. (2009). The burden of health insurance premium increases on American families. 


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