A new national study confirms what many working West Virginians already suspected: Employee wages aren't keeping pace with the higher cost of their health insurance premiums.

In West Virginia, the average cost of health insurance premiums increased 12 percent from 2002 to 2005, according to a Robert Wood Johnson Foundation study released today. At the same time, policyholders' wages dropped nearly 2 percent.

 "Not only are health-care costs skyrocketing, but in terms of purchasing power, we're losing ground," said Perry Bryant, executive director of West Virginians for Affordable Health Care.

Nationwide, health insurance premiums climbed even faster - 30 percent, though wages increased by 3 percent.

The report also spotlights how health-care cost increases are making it more difficult for companies to provide insurance to their workers. 

In West Virginia, the number of private businesses that offered health insurance to their workers fell by about 2,300 from 2002 to 2005, according to the study, which was conducted by researchers at the University of Minnesota.

Less than half of West Virginia businesses offer health insurance to their employees.

Also, 16,100 fewer West Virginians worked in private-sector jobs that provided health insurance benefits in 2005, compared to 2001.

A new national study confirms what many working West Virginians already suspected: Employee wages aren't keeping pace with the higher cost of their health insurance premiums.

In West Virginia, the average cost of health insurance premiums increased 12 percent from 2002 to 2005, according to a Robert Wood Johnson Foundation study released today. At the same time, policyholders' wages dropped nearly 2 percent.

 "Not only are health-care costs skyrocketing, but in terms of purchasing power, we're losing ground," said Perry Bryant, executive director of West Virginians for Affordable Health Care.

Nationwide, health insurance premiums climbed even faster - 30 percent, though wages increased by 3 percent.

The report also spotlights how health-care cost increases are making it more difficult for companies to provide insurance to their workers. 

In West Virginia, the number of private businesses that offered health insurance to their workers fell by about 2,300 from 2002 to 2005, according to the study, which was conducted by researchers at the University of Minnesota.

Less than half of West Virginia businesses offer health insurance to their employees.

Also, 16,100 fewer West Virginians worked in private-sector jobs that provided health insurance benefits in 2005, compared to 2001.

"It's pretty disturbing," said Bryant, whose organization is sponsoring a "Cover the Uninsured" rally at the state Capitol Saturday morning. "Less than 50 percent of firms are offering health insurance. If we really want to do something for businesses in West Virginia, it's aggressively holding down health-care costs."

West Virginia businesses also are paying a larger share of workers' total insurance costs - about 82 percent - the second-highest percentage in the nation, according to the study. The average cost of a family health insurance policy for a West Virginia worker was about $10,900 in 2005 in premiums for family health insurance coverage, about $200 more than the national average.

"We haven't done enough for businesses to hold down health-care costs," Bryant said. "More and more businesses, more and more families, have to pay a higher burden for health care."

The study found that the percentage of West Virginians with private health insurance fell by about 7 percent between 2001 and 2005.

Steve Roberts, executive director of the West Virginia Chamber of Commerce, said his organization recently surveyed small-business owners across the state who identified increased health-care costs as their No. 1 concern.

"Small businesses are struggling to find anyone even willing to write [health insurance] policies," Roberts said. "The challenge is as the nature of our economy has shifted to small businesses and a service economy, those jobs, in many cases, don't come with comprehensive benefits. Those are the people who suffer financially when they get sick." 

About 18 percent of West Virginians - about 274,000 people - don't have any health insurance.

To contact staff writer Eric Eyre, use e-mail or call 348-4869.