Health Care Premiums Skyrocketing

Amazingly, there are still people in America who don't think we have a problem with health care, especially private health insurance. All I can say is these people must be rich, or they don't have to pay for their own health insurance.

They're certainly not among the nearly 44 million Americans without health insurance, or the millions more who have to pay their own premiums for health insurance. These people know what a mess the private insurance companies have made of our health care system. The first group already can't afford private health insurance and the second won't be able to afford it much longer.

In the last ten years, median incomes have risen by about 20% (mostly among high-income earners, since low and middle incomes have been stagnant). But this 20% pales in comparison to the rise in private insurance premiums. These premiums have risen a whopping 92% -- nearly five times the rise in median income.

Ten years ago, the average annual private health insurance premium for a family was $6638. Today it is $12,721, and unless there is real health care reform enacted soon, it will probably continue to rise by nearly 10% each year.

It's no wonder that more and more companies are ceasing to provide employees with health insurance. They're simply being priced out of the market. And if the companies can't afford to pay the premiums, you know the employees won't be able to pay them either.

Making matters even worse, the higher premium prices won't buy the same coverage offered ten years ago. The insurance companies are not just raising prices, but they are thinning the coverage at the same time. Current policies will not pay for many procedures, and those they do cover are usually accompanied by a high co-pay.

The insurance company lobbyists may be successful in killing effective health care reform, but that does not mean it's not badly needed. Americans are in trouble -- even those who don't yet realize it.