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Income Can’t Keep Up with Health Care Cost Increases

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by Mike Hall, Aug 21, 2009

Photo credit: Ramon Becerra  
 

Here’s more evidence why health care reform and controlling soaring health care costs is so desperately needed to help working families.

In Indiana, for example, between 2000 and 2009, the cost of a family health care premium provided by an employer increased 116.6 percent, but working families’ median income rose just 14.9 percent. In Pennsylvania, premiums were up 95.2 cent and income 17.5 percent.

Similar figures are repeated in state after state, according to a new study by Families USA.

But here’s the kicker: All that extra money going to the insurance companies isn’t buying more coverage. Benefits have been reduced and workers are paying higher deductibles and co-pays.

Says Ron Pollack, executive director of Families USA:

Rising health care costs threaten the financial well-being of families across the nation. If health care reform does not happen soon, more and more families will be priced out of the health coverage they used to take for granted.

The study also finds that between 2000 and 2008, the total percentage of U.S. firms offering health coverage declined by 6 percentage points—from 69 percent of firms to 63 percent—with small businesses being the most likely to drop coverage. The report warns:

The combination of stagnant wages and rising health care costs is placing a growing strain on family budgets, and many families have reached a breaking point. Quite simply, America’s families are being priced out of health coverage.

Click here for state-by-state figures.

As Rose Ann DeMoro, executive director of the California Nurses Association/National Nurses Organizing Committee (CNA/NNOC), points out, the United States is the only industrialized nation in which health care is not a fundamental right, “but bartered for profit by a maze of corporations.”

The result is about 45 million Americans with no health coverage and tens of millions more denied medical care because their insurer won’t pay for it.

In a column for the London Times website, Times Online, she says the current debate raging in the United States “must seem incomprehensible to many in the UK.”

Union members continue to take grassroots action for health care reform, mobilizing yesterday in California, Colorado, the District of Columbia, Florida, Illinois, Indiana, Louisiana, North Dakota, Tennessee and Virginia at congressional town hall meetings and other events.

You can join the debate, help counter the lies being spread and show that there is strong public support for health care reform. Visit our friends at Health Care for America Now! (HCAN!) and enter your ZIP code in the Take Auction in August box to find a town hall meeting or other event in your area.

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3 Comments

  1. Sally on 21.08.2009 at 15:40 (Reply)

    “she says the current debate raging in the United States “must seem incomprehensible to many in the UK.” ”

    Hell, it seems incomprehensible to me, and I live here in Good Ole Number One!

  2. ken on 21.08.2009 at 17:36 (Reply)

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  3. MCKittys on 25.08.2009 at 03:59 (Reply)

    How about a union operated health insurance plan. Run by unoin people, for union people and those who have retired. Is it against the law? Imagine the pressure it would put on the insurance companies when they lose a third or more of their users to a more comprehensive and less expensive plan. Imagine the selling point for those looking to start a union in their place of work. Heck, maybe even the employers would be more inclined to have their workers unionized because it would save them money also because our plan would be cheaper for them also.

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