In 2003, premiums for job-based health benefits rose by 13.9%. 2004 is the third consecutive year of double-digit premium increases, and a higher rate of growth than any year since 1990. Premium increases in 2003 exceeded the overall rate of inflation by nearly 12 percent age points.
The cost of coverage for a family of four is now nearly $9,100 per year. Premiums for insured Plans rose at a higher rate than premium equivalents for self-funded plans, an indication that insurers may be putting more emphasis on profitability in setting premiums.
Employers are the primary source of health insurance in the U.S., covering 62% of all employees including both full and part-time. While other workers may have coverage through their spouse's job, many do not have that option. Census Bureau estimates report that nearly one in five workers is uninsured.
The primary reason workers are uninsured is because their employers do not offer health benefits, particularly in small businesses. Yet, even in businesses that offer coverage, some employees are ineligible for that coverage or do not sign up because they must pay a significant share of the premium. Among firms offering health benefits, 68% of workers are covered by their firm's health plan, a similar rate to last year.
Coverage rates do not differ significantly by firm size, but they do vary by industry, likely due to differences in eligibility. The coverage rate for workers in the retail industry is 45%, compared to coverage rates of 82% for state and local government workers and 77% for those working in the transportation, communication, and utility industries.
Higher wage firms fewer than “35% of workers earn $20,000 or less annually have higher coverage rates than lower wage firms 35% or more of workers earn $20,000 or less annually. Seventy-one percent of workers......
