The high price of healthcare and insurance may not be breaking news, but over that last decade health care costs have risen faster than the cost of other goods and services in the US, leaving many Americans financially worse off, according to a new RAND Corp. study. Although the median-income American family saw a 30 percent jump in income from 1999 to 2009, health spending grew much more quickly and largely wiped out these gains, the researchers reported.
Translated into dollars, the findings mean that a typical family of four had a monthly income growth of $1,910 over the decade but had to spend 40 percent of that on health care costs, the researchers said. And that same family now has only $95 a month in extra income once health care costs, taxes and higher consumer goods prices are calculated.
In addition, monthly health insurance premiums grew by 128 percent, to an average of $1,115, and out-of-pocket spending surged 78 percent. But although many health care costs are obvious to Americans, like premiums, co-pays and deductibles, additional costs that impact a family wallet include:
— Employers’ share of the monthly premium for private health insurance, which reduces an employee’s total compensation.
— Taxes supporting government health programs such as Medicare, Medicaid and the military health care system.
At Amante and Associates Insurance Solutions we continue to monitor health care news and policy changes doing everything we can to help keep costs down for your family and your business.
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