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Earnings lag behind health care costs
Report shows premiums in Ohio jumped 73.3% in a six-year period, while income rose only 8.7%.
Wednesday, October 18, 2006
DAYTON — The price of health care insurance is taking a bigger bite out of our paychecks, a new report illustrates, and at least one health care economist sees the trend growing.
"It's definitely going to continue," said John McAlearney of Wright State University's Boonshoft School of Medicine.
The cost of health insurance keeps climbing because the cost of health care — expensive improvements in medical technology, drugs and procedures — are growing, too, McAlearney said.
"We're getting better health care than we did five years ago, but we have to pay for it," he said.
Families USA, a group that promotes universal health care, found health insurance costs in Ohio rose 8.4 times faster than earnings from 2000 to 2006.
The amount Ohio workers and employers must pay for family health insurance premiums has risen 73.3 percent in six years, about the same as the national average. Individual premiums in Ohio have increased 73.8 percent, more than the national average of 64.1 percent, the report found.
The average median income in Ohio, meanwhile, went up only 8.7 percent during the same period, shy of the national earnings increase of 11.6 percent, Families USA discovered while using U.S. Census, Labor Department and Health and Human Services data.
Dayton business owner Ed Grant feels the pinch both ways. He pays the full tab for his personal health insurance and also for his six employees at Graphics Terminal Inc. in downtown Dayton.
"We hit about a 20 percent increase just this year," Grant said with a frustrated sigh in his voice.
The Families USA findings are similar to a national survey in September by the Kaiser Family Foundation, which found health insurance premiums had risen 7.7 percent in the past year. That was the slowest rise since 1999, but still more than twice the rate of inflation.
"If earnings continue to lag behind fast-rising health care costs, Ohioans will face diminishing economic and health security," said Ron Pollack, executive director of Families USA. "It is high time for national leaders to address this growing problem and make it a top national priority."
McAlearney, the economist, said much of the future of health care comes down to a tough choice for employers and families alike.
"We're getting something for this," he said, "but do we want better and better health care or do we want to spend our money on other things?"
Grant, 51, said he'll soon have to trim benefits for his employees or share the costs to protect his business.
"Having a relatively conservative nature, I can't go along with the idea that government needs to come in and save us," he said. "On the other hand this is a whole industry that seems to be out of touch and out of reach with the average working person."
Comments
By Tom
October 19, 2006 10:10 AM | Link to this
S.W. - I can’t believe you keep saying health care is “free” in Canada. Do you know what their tax rates are like up there? What are you willing to pay for your health care?
By George Schneider
October 19, 2006 08:56 AM | Link to this
Fo S.W. who wants a free health care systme like Canada. Move to Canada.
Having experience in the health care industry, OBESITY is one of the major problems, I see it every day.
By Mike
October 18, 2006 12:06 PM | Link to this
Group health insutance is like socialism - very anti-american. The trend is individual/private health insurance where you are rewarded for your good health, and the last 5K that you have run. Shop around at Quickhealthinsurance.com and you can find very good rates.
By Al
October 18, 2006 11:05 AM | Link to this
Oddly enough, I agree with both Jim and S.W. The rising obesity rate and it’s associated illnesses are undoubtedly raising health care costs. However, it’s a fact that greedy health insurers are raking in money, while often denying treatment that doctors deem necessary. I know there are a lot of negatives to socialized medicine, but we need some form of national health care. Hopefully this will be a top priority of the Democrats when they regain control of the House and the Senate.
By Teresa
October 18, 2006 10:33 AM | Link to this
Recently, Miami Valley hospital sent a letter to its employees indicating that they were going to drop spouses from the plan if they were eligible to receive coverage from their own employer. If you want your spouse to continue on the family plan that you are already paying for, you will have to pay an additional fee to continue coverage. We will now be paying over $500 a month for insurance coverage. Insurance is too expensive and a big scam.
By John Curry
October 18, 2006 09:36 AM | Link to this
A significant portion of health insurance costs are driven by the profit motive of the insurance companies. A nationalized healthcare program (similar to Medicare and Medicaid) which would operate on a non-profit basis would go far in bringing the costs down. Of course, a nationalized program wouldn’t line the campaign coffers of those currently in the majority in the U.S. House and Senate as is currently the status quo.
By Rick
October 18, 2006 09:35 AM | Link to this
Health care is growing too much to fast, the cost is rising and alot of employees can’t handle it.. I myself, is looking over my finances and thinking about dropping my coverage just too catch up and pay the daily bills. I recently went to the emergency room and it cost me to pay my co-payment and I looked at the bill and it was over 600 dollars for the visit for a tooth ache. Which they gave me a temporary relief for and said to go to a dentist, which cost me another 300 or more.. Cost to much
By S.W.
October 18, 2006 08:54 AM | Link to this
I disagree with the statement that the PE teacher made about if we were in better shape then health care would go down. I already feel that we are paying too much for so little that we are receiving now. I feel health care should be free like it is in Canada.
By Jim
October 18, 2006 08:25 AM | Link to this
The rising health care costs are attributed to America’s lack of general fitness. As a PE teacher it is really hard to do my job knowing that the focus in schools is on academic testing and the physical well-being of the students is often overlooked. Maybe someone will figure out that if we had a healthier society we could eventually lower our health care costs in the future.
By Shantei
October 18, 2006 07:24 AM | Link to this
It is a shame that some of us can’t even afford health insurance. Half of my check goes to health insurance, and that is just for me. If I would have included my family, I wouldn’t get paid.
By Bostee
October 18, 2006 06:17 AM | Link to this
Greed is destroying the fabric of American society and we’re in denial. We refuse to address the issue