Keeping health care insurance in the United States is usually contingent on keeping your job. Lose your job, lose your insurance. A new Kaiser Family Foundation report finds that nearly three out of four middle-income families get their insurance thru their jobs. More families are in danger of losing their health care coverage as the chance of being unemployed increases.
The study also found that families are paying more and getting less. The average family contribution for employer-offered health care is $3,354, which is 7% of pre-tax income for a family earning $50,000 per year. In the eight years from 2000 to 2008, the cumulative increase in health insurance premiums grew three times as fast as wages increased. This system is unsustainable in the long term.
And, employees are fortunate if they can find an employer who still offers health care insurance. In 2008, 63% of all firms offered coverage,
down from 69% in 2000. 99% of firms with union workers offer coverage compared to only 60% of firms without unions. If the firm pays higher wages (white collar), 68% of employers offer coverage versus only 40% of lower wage paying companies.
The current health care system is unsustainable and damages the ability of businesses to compete in the global economy. Rapidly growing premiums put a strain on employers, encouraging them to drop coverage on employees. Employees and families without coverage have more health problems, which keeps them less productive due to illness. And, some of these uncovered families will be unfortunate enough to have a major medical problem which will cause financial problems for the family for years to come.
Enough is enough - reform the health care system with a public option.
Comments