W.Va. workers take hit on health-care premiums
West Virginia workers' health insurance premiums increased four times faster than their wages during the past eight years, according to a report released Wednesday.
CHARLESTON, W.Va. - West Virginia workers' health insurance premiums increased four times faster than their wages during the past eight years, according to a report released Wednesday.
For family health-care coverage, an employee's portion of health insurance premiums in West Virginia rose from $1,650 a year on average to more than $2,500 a year - a 50 percent jump.
Median wages, meanwhile, increased only 18 percent - from $19,000 to $23,600 - between 2000 to 2007, according to the study by Families USA, a Washington, D.C.-based health-care advocacy group.
The report also concluded that West Virginia families are paying more for health insurance but receiving less coverage. Employers are offering "thinner" coverage with fewer benefits, and higher deductibles and co-payments.
"Skyrocketing health-care costs were a problem in West Virginia before the current economic downturn, and slow wage growth or job losses only make matters worse," said Ron Pollack, executive director of Families USA. "As health care becomes less and less affordable, West Virginians face difficult choices to provide health coverage for themselves and their families. A bad situation is clearly growing worse."
Among the report's findings:
For individual health coverage, West Virginia workers' share of premiums rose from $580 to $877 a year on average.
West Virginia businesses also are paying a higher amount toward their employees' health insurance premiums. For family coverage, the employer's share of premiums rose from $5,195 to $9,400 a year - an 80 percent increase.
Rising health-care costs are prompting more people to go into debt, Pollack said. The report cites a 2005 study that found more than half of people who filed for bankruptcy had problems paying medical costs.
"If this troubling trend continues, the health-care affordability crisis will get much worse, and many more West Virginians will become uninsured or underinsured," Pollack said. "If earnings continue to lag behind fast-rising health-care costs, West Virginians will face diminishing economic and health security."
West Virginia has about 248,000 people under age 65 without health insurance, the report said.
Reach Eric Eyre at erice...@wvgazette.com or 348-4869.
CHARLESTON, W.Va. - West Virginia workers' health insurance premiums increased four times faster than their wages during the past eight years, according to a report released Wednesday.
For family health-care coverage, an employee's portion of health insurance premiums in West Virginia rose from $1,650 a year on average to more than $2,500 a year - a 50 percent jump.
Median wages, meanwhile, increased only 18 percent - from $19,000 to $23,600 - between 2000 to 2007, according to the study by Families USA, a Washington, D.C.-based health-care advocacy group.
The report also concluded that West Virginia families are paying more for health insurance but receiving less coverage. Employers are offering "thinner" coverage with fewer benefits, and higher deductibles and co-payments.
"Skyrocketing health-care costs were a problem in West Virginia before the current economic downturn, and slow wage growth or job losses only make matters worse," said Ron Pollack, executive director of Families USA. "As health care becomes less and less affordable, West Virginians face difficult choices to provide health coverage for themselves and their families. A bad situation is clearly growing worse."
Among the report's findings:
For individual health coverage, West Virginia workers' share of premiums rose from $580 to $877 a year on average.
West Virginia businesses also are paying a higher amount toward their employees' health insurance premiums. For family coverage, the employer's share of premiums rose from $5,195 to $9,400 a year - an 80 percent increase.
Rising health-care costs are prompting more people to go into debt, Pollack said. The report cites a 2005 study that found more than half of people who filed for bankruptcy had problems paying medical costs.
"If this troubling trend continues, the health-care affordability crisis will get much worse, and many more West Virginians will become uninsured or underinsured," Pollack said. "If earnings continue to lag behind fast-rising health-care costs, West Virginians will face diminishing economic and health security."
West Virginia has about 248,000 people under age 65 without health insurance, the report said.
Reach Eric Eyre at erice...@wvgazette.com or 348-4869.
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