Tuesday, January 27, 2009

Health Cost Effects

Post by Pin-yu Liao

While inflation has been still occurring, the health insurance premiums have been increasing to surpass the cost of inflation, even though at a slow pace.
According to the latest annual survey from the Kaiser Family Foundation., the slowing growth of health insurance premiums are shown by increasing 6.1 percent. The employers and the employees are suffering from the growing health costs.
It is costly for the workers to pay a large amount of money to be insured while experiencing inflation. In order to get a coverage, single workers have to depend on themselves by paying an average of 694 dollars. Married employees who work at small companies pay more on average for the cost of family coverage ($4,236 annually), as opposed to larger firms ($2,831 annually). As for single coverage, they at small firms pay $561/year, when people who work at large firms spend $759. Moreover, in a survey that was conducted in 1000 people, 28 percent asserted that the rising costs of health insurance made it hard for them to pay for housing, heat and food.
The cost-sharing method that companies adopted resulted in employees’ pressures. Dallas L. Salisbury, the President of the Employee Benefit Research Institute, commented, “Employees who were paying nothing are now paying something, and those who were paying something are paying more."
U.S. employers spend more money on health costs than any employers from other countries. The companies are burdened with the speeding health costs. They have been reporting losses due to health costs. Overall, health costs are becoming a burden and an issue to all people to the question of whether it can be affordable.


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