HEALTH INSURANCE: Premiums and Increases

Comparison of Individual and Family Premiums Nationally and by State - 2004 - 2008.

Originally released June 2007; Revised: October 2008

The increased cost of health insurance is a central fact in any discussion of health policy and health delivery. As annual premiums surge above $12,000 for an average family, costs are blamed for rising uninsured and "under-insurance." For those Americans who are fully-covered, these cost realities affect employers, both large and small, not to mention the "pocket-book impact" on ordinary families. In 2008 the average fully insured individual faced an employee share of $725 for 1-person coverage and a $3,983 annual share for family coverage. The total premiums to cover a family are up to $12,680 according to the annual Kaiser/HRET survey of Employer-Sponsored Health Benefits. The table below illustrates some specific categories of health insurance policies, based on group insurance rates.

health premiums 2008- graph

Average Annual Firm and Worker Premium Contributions, 2007

2007 Health insurance premiums

BACKGROUND & HISTORY

While the overall rate of uninsured Americans has increased in recent years, the percentage of workers offered health insurance and the percentage of workers taking coverage when it was offered have remained relatively steady since the late 1980s, according to a study published in mid-2007 by the nonpartisan Employee Benefit Research Institute (EBRI).

RECENT STATISTICS, STATE BY STATE, 2004-2006

Many organizations and agencies have reported health premiums over the years. However, state-by-state current data is scarce, and no federal agency releases such figures on an annual basis. For 2007, the Joint Economic Committee of the U.S. Congress in April released an updated tally of actual premium payments, contained within State by State Economic Snapshots: May 2007, online at http://jec.senate.gov. Their report indicates an average annual increase of 8.8%.

Average Health Care Premium

Single- Average Health Care Premium Family - Average Health Care Premium # enrolled

State 2006 2005 2004 2006 2005 2004 # Employer-based % of Pop.

U.S. $4,357 $4,046 $3,705 $11,768 $10,927 $10,006 156,326,430 53%

AL $4,015 $3,728 $3,414 $10,963 $10,180 $9,322 2,384,910 53%

AK $5,150 $4,782 $4,379 $12,185 $11,314 $10,361 332,320 52%

AZ $4,043 $3,754 $3,438 $10,560 $9,805 $8,979 2,729,070 46%

AR $3,822 $3,549 $3,250 $9,859 $9,154 $8,383 1,265,580 46%

CA $4,156 $3,859 $3,534 $11,240 $10,436 $9,557 17,110,580 48%

CO $4,333 $4,023 $3,684 $12,029 $11,169 $10,228 2,649,060 58%

CT $4,544 $4,219 $3,864 $12,978 $12,050 $11,035 2,111,690 61%

DE $4,504 $4,182 $3,830 $12,454 $11,563 $10589 483,560 58%

DC $4,961 $4,606 $4,218 $13,810 $12,822 $11,742 269,570 50%

FL $4,477 $4,157 $3,807 $12,283 $11,405 $10,444 6,176,050 46%

GA $3,922 $3,642 $3,335 $10,958 $10,174 $9,317 4,656,210 53%

HI $3,668 $3,406 $3,119 $10,091 $9,369 $8,580 740,990 60%

ID $4,033 $3,744 $3,429 $10,477 $9,726 $8,908 761,500 54%

IL $4,431 $4,115 $3,768 $12,181 $11,310 $10,357 7,362,010 59%

IN $4,217 $3,916 $3,586 $11,607 $10,777 $9,869 3,539,530 58%

IA $4,186 $3,889 $3,561 $11,081 $10,289 $9,422 1,722,250 59%

KS $4,364 $4,052 $3,711 $11,152 $10,354 $9,482 1,568,080 59%

KY $4,166 $3,868 $3,542 $11,628 $10,797 $9,887 2,169,190 54%

LA $4,099 $3,806 $3,485 $12,009 $11,150 $10,211 2,072,290 49%

ME $4,841 $4,495 $4,116 $12,729 $11,819 $10,823 665,260 51%

MD $4,376 $4,063 $3,721 $11,590 $10,762 $9,855 3,321,870 60%

MA $4,870 $4,522 $4,141 $12,418 $11,530 $10,559 3,762,010 59%

MI $4,608 $4,278 $3,918 $11,482 $10,661 $9,763 5,835,440 59%

MN $4,480 $4,159 $3,809 $12,122 $11,255 $10,307 3,232,420 63%

MO $4,186 $3,886 $3,559 $10,834 $10,060 $9,212 3,129,220 55%

MS $4,242 $3,939 $3,607 $10,806 $10,033 $9,188 1,309,470 46%

MT $4,328 $4,019 $3,680 $10,625 $9,865 $9,034 417,910 46%

NE $4,381 $4,068 $3,725 $11,297 $10,490 $9,606 1,005,160 58%

NV $4,556 $4,230 $3,874 $11,726 $10,887 $9,970 1,381,070 57%

NH $4,803 $4,460 $4,084 $13,120 $12,182 $11,158 854,280 66%

NJ $4,566 $4,239 $3,882 $13,437 $12,476 $11,425 5,428,020 62%

NM $4,000 $3,714 $3,401 $11,317 $10,508 $9,623 828,840 43%

NY $4,537 $4,213 $3,858 $12,228 $11,354 $10,397 10,012,430 53%

NC $4,176 $3,878 $3,551 $12,044 $11,183 $10,241 4,441,010 53%

ND $3,930 $3,649 $3,342 $9,173 $8,518 $7,800 345,400 56%

OH $4,448 $4,130 $3,782 $11,279 $10,472 $9,590 6,706,100 59%

OK $4,286 $3,979 $3,644 $11,101 $10,307 $9,439 1,648,530 48%

OR $4,359 $4,047 $3,706 $11,650 $10,817 $9,906 1,888,140 52%

PA $4,317 $4,009 $3,671 $11,746 $10,906 $9,987 7,041,680 58%

RI $5,137 $4,770 $4,368 $12,020 $11,160 $10,220 584,730 56%

SC $4,437 $4,120 $3,773 $11,734 $10,895 $9,977 2,079,910 50%

SD $4,056 $3,766 $3,449 $11,788 $10,945 $10,023 388,100 51%

TN $4,274 $3,968 $3,634 $12,397 $11,511 $10,541 2,854,050 49%

TX $4,447 $4,129 $3,781 $11,890 $11,040 $10,110 10,805,450 48%

UT $3,568 $3,313 $3,034 $10,178 $9,450 $8,654 1,431,430 58%

VT $4,791 $4,449 $4,074 $12,572 $11,673 $10,690 318,520 52%

VA $4,546 $4,221 $3,865 $12,031 $11,171 $10,230 4,406,750 60%

WA $4,243 $3,940 $3,608 $12,016 $11,157 $10,217 3,428,500 56%

WV $4,342 $4,032 $3,692 $11,281 $10,474 $9,592 867,510 48%

WI $4,618 $4,288 $3,927 $11,933 $11,079 $10,146 3,198,690 59%

WY $4,423 $4,107 $3,761 $11,393 $10,578 $9,687 264,970 53%

NOTE:
1 - The JEC is a bicameral Congressional Committee composed of ten members from each the Senate and the House of Representatives. There are twelve Democrats and eight Republicans on the Committee. The JEC was established by the Employment Act of 1946 (Public Law 304). Its main purpose is to make a continuing study of matters relating to the US economy. The Committee holds hearings, performs research and advises Members of Congress.

Additional Resources

Premiums versus Paychecks: A Growing Burden for Workers: Over the last eight years, health care costs have skyrocketed, while working families’ wages have stood still, putting a significant strain on family budgets. This series of state-specific reports examine what these trends mean for working families. | Press Releases by Families USA, (October 2008) New item

Individual Health Insurance 2006-2007: A Comprehensive Survey of Premiums, Availability, and Benefits - One of a series of AHIP surveys, shows that the market for individually purchased coverage is more affordable and accessible than may be widely known. Published 12/17/07.

Posted by NCSL's Finance, Insurance and Managed Care Project - Richard Cauchi, Program Director -- info