Health care costs still outstrip Floridians' wages

It's hardly a surprise that health care costs continue to suction the dough out of our wallets. Now a new report confirms it for Floridians, but also offers a few interesting twists. Family health care premiums rose an estimated 3.6 times faster than earnings for Florida’s workers from 2000 to 2007, says the report, "Premiums vs. Paychecks"  from the consumer health care advocacy group Families USA. In that seven-year period, family health care premiums rose by 72 percent while median earnings rose by only 20.2 percent. Among the key findings:

• For family health coverage provided through the workplace in Florida, annual health insurance premiums in the 2000-07 period rose from $6,812 to $11,720—an increase of $4,908, or 72 percent.
• Between 2000 and 2007, the median earnings of Florida’s workers increased from $22,753 to $27,353—an increase of $4,600, or 20.2 percent.

Anyone who's followed this issue should not be shocked at the resulting squeeze hitting Florida households. But there are some nasty trends emerging from these figures. More Floridians -- pressed not only by health care costs but also rising expenses of gasoline, housing, insurance and a weak job market -- are more likely to drop their insurance coverage as unaffordable, or choose marginal coverage and thus become "underinsured," the report suggests. One of every four Floridians under age 65 is uninsured.

Another blow? Floridians who get their health care coverage through their workplace are finding they are paying a rising percentage of the premiums. In other words, employers are paying more, but more of the overall increase is being paid by the employee. Here's how that works:

• For family health coverage in Florida, the employer’s portion of annual premiums in 2000-07 rose from $4,843 to $7,899. That's an increase of $3,056, or 63.1 percent.
• For family health coverage, the worker’s portion of annual premiums rose from $1,969 to $3,821. That's an increase of $1,852, or 94.1 percent.
• For individual health coverage, the employer’s portion of annual premiums rose from $2,096 to $3,266. That's up $1,170, or 55.8 percent.
• For individual health coverage, the worker’s portion of annual premiums rose from $504 to $910. That's up $406, or 80.5 percent.

"If this trend continues, the affordability crisis will get much worse and more Floridians will become uninsured and underinsured," said Ron Pollack, executive director of Families USA, during a Wednesday morning teleconference on the report. "And Floridians will face diminishing health and economic security."

The silver lining? Florida's premium-vs.-paycheck numbers were less onerous than the nation's, Pollack acknowledges. While Florida health care premiums rose 72 percent from 2000 to 2007, nationally they rose 78.3 percent. And while Florida's median earnings rose just 20.2 percent in that same period, the nation's as a whole increased just 14.5 percent.

-- Robert Trigaux, Times Business Columnist

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Comments

[Ray]

The middle class needs single payor universal healthcare system as avocated in Michael Moore's Sicko. It is the only healthcare system - a system every other civilized country has - to solve this crisis.

The average Cuban does not worry about losing their home because someone gets sick.

[Paul]

The cost of health "care" and health insurance premiums are two separate issues. The key driver of health insurance premiums is the COST of HEALTH CARE. Insurance premiums won't come down until the cost of care does!

[Paul]

Ray,

I'm sure most Cubans would be happy to have a home to LOSE. If it's sooo great, why aren't we seeing the masses flock there?

It's not that simple.

[Jon Dehmel]

This story emphasizes the fact that Floridian workers are being left behind. I can only imagine the reason that we did not do as bad as other states overall is because we have such low wages now, and virtually no health care so it is easy to show large percentage gains. We, as workers, need to organize as they did at the turn of the century in order to get our collective voices heard. Together, we can begin to solve these issues. The free market gives us the right to demand more from our employers, and the constitution makes it our duty to steer our leaders toward the good of all people… not just CEO’s and large stockholders.

[Ray]

Oh - forgot to mention if we get a Single Payor System run by a new Federal Agency - it wouldn't need profits, would not need to advertise, could be run by a govermnent manager who makes about $200K instead of $90 Million CEO, would not buy Corporate luxury boxes at ball games, etc.

That would save 30%-40% right there.

[chuck]

Ray,
Sure, let's give healthcare to everyone, very easy to stand behind a podium & tell everyone what they want to hear. How in the world do you propose to pay for this huge new program? Medicare/Medicaid & Social Security already take up 46% of our federal budget. Imagine a system covers everyone, the expense would cripple the budget & we would never be able to get our collective arms around the spending. It simply cannot be accomplished.

[Ray]

Chuck-

You end the war, cut the military spending to reasonable levels, make the CEO's, Corporations, and Rich People pay their fair share and we can certainlly balance the budget and have a health care system that benefits citizens instead of big corporations.

They have it in Europe. You mean to say Europe can do it and we can't.

[Paul]

Like they say, if you think health insurance is expensive now - wait until it's free....

[Mike]

Um, if you use services, or file claims, premiums tend to go up. Its the case for ALL insurance. Its common sense peole.....

[TruthNotLies]

2:19 - the average cuban has to bring their own sheets, food, and medicines if they are hospitalized.

http://www.canf.org/Issues/medicalapartheid.htm

[mike]

just go to the ER, get treated and ignore the bills when they come in. same as illegals. there's your universal health plan.

Yeah, we in American are the best. We're #1! All those other countries with decent health care obviously don't know what they are doing. We're the richest country in the world, we're the best at everything, fools!

If you get sick, so what, sell your house to pay the bills. The doctors needs a new condo on the beach. Foreigners with their sane health care for all, and cheap meds, are just jealous. I assume that's why they laugh at the best country in the World.

[chuck]

Ray,

Although I admire you lofty ideas, let me go point by point & respond:

1. If we use the money we are using to fight the Iraq, what happens when we need to fight another war in the future. History says, this is not going to be the last war we ever engage in. What happens then.

2. Military spending is less than education spending. With the rise of terrorists around the world, we need to increase military spending in the future, I am quite sure we are going to need to use it.

3. CEO's, Corporations, Rich People already pay there fair share Ray. You can trot out this typical class warfare drivel & it does not wash. Again it is very easy to make a blanket statement to just make the rich people pay, they have the money. The fact of the matter Ray, there are not that many rich people to pay enough taxes to sustain the level of spending we currently have now.

The reason it works in Europe is the exact reason it would not work here. Europe's overall economic situation is not something we need to strive for or immulate. There is a reason their unemployment is significantly higher, growth is lower, etc.

Ray, universal healthcare is not going to happen over here. Just forget it. Not going to happen.

[Overly Endowed]

Great, screw universal then. But help those in the middle class who can't afford it. Help those who have it and it quits covering after so much so they don't have to file for bankruptcy as a result of illness.

Let those who can afford it do so. Help those who can't.

As for the cost of healthcare - when they quit charging more to individuals without insurance as opposed to what the insurance company pays, then let's talk about costs.

[chuck]

The answer to that question is to make everyone purchase insurance. If everyone, including the young were forced to purchase a policy, the premiums would drop considerably. The problem with your thought process, why should the government help someone who chooses not to purchase b/c they would rather have a cell phone, new clothes, a Sony Playstation, etc. Of the estimated 43 million people insured in this country, studies show 12 million of those are illegal. That leaves about 31 million of which 16 million are between the age of 18-35. They choose not to insurance themselves b/c they are not sick, etc. If you want to pay the costs that insurance companies pay to a hospital, simply purchase a catastrophic policy for $35 a month. You would receive the contracted rate for hospital admissions, ER visits & outpatient surgeries.
Again, if everyone was forced to be insured, especially the young & healthy, it would go along way to solving the cost of insurance.

Chuck, we all buy house insurance. It doesn't drop. Get real, companies will milk as much as they can get. Insurance companies employ doctors to reject 10% of claims, and give them bonuses for the more they reject. The system is rotten and it'll never be fixed. Get used to your earnings going into medical costs.

People don't but a playstation every month. You obviously have never had to pay for heath cover, you're looking at a PS3 every two weeks, plus deductibles, plus co-pays. So spare us your tripe and go learn what the true costs are.

Everyone makes valid points on here & there is no easy solution. I really do not think we want the federal government in charge of healthcare(25% of our GDP), they do not exactly have a sterling track record of running things efficently or without waste. As they say, the road to "h ll" was paved with good intentions. With that being said, I think there is a sometype of hybrid model that combines private insurance companies & a subsidy from the federal government to lower the costs. Most people do not complain how about the quality of the healthcare or the delivery of the care. We live in a country where your physician asks you to can get an MRI completed & the next day you have 12 facilities to choose from have it done. Try that in a single payer system. The bottom line is the overall expense of the coverage. There are some smart folks that I am sure can figure it out at some point. But let's not radically change the entire system & nationalize 25% of our GDP when the system needs to be tweaked a bit. I personally do not want my physician to be an employee of the federal government, which is essentially what he/she would become in a single payor system.
Again, I stress everyone has great points & valid arguments, I just think that we can take the best aspects of the private system we currently have now & merge it with the best aspects of a single payor system.

[john]

Mike had it right...go to the ER and then dont pay and/or file bancruptcy...may as well...

Signed

No Job Since 2001 MBA BBA

No Insurance of any kind...including auto...just like many of my MBA friends...

We are Mexico!

The easy solution is to start focusing on how to pay for Universal Insurance Coverage, think of it as medicare for everyone.

Pay for it Universally by establishing an across the board national sales tax on all transactions exept food,medicine and rent/mortgage. The sales tax charged would be adjusted each year in order to raise the funds necessary.

There is no room for freeloaders not even illegal aliens. Everyone gets it, everyone pays!

$11,000 for one lousy physical and a visit to the doc to find out I should gargle salt water.

Glad my government knows how to spend my money better than I do. 33% in federal tax, a cool ten grand on local taxes, another ten grand to the health insurance company, chock me up for another 10K for home, car and property insurance.

What are we up to know $60,000 a year somebody else tells me how to spend.

And you wonder why "it's the economy, stupid!"

Then there are recreation fees, street light fees, taxes on my cell phone, my home phone, my cable, SALES TAX, GAS TAXES, freeway tolls...it's a wonder there's anything left to feed the dog!

...and if I work just a little bit harder, I can pay 40% in federal income tax! I can't wait!!!

How about letting anyone with a credit score above 750 self insure?

I'll keep my money, invest it and rebuild my own house and pay for my own $89 physical. I'll even kick in $15 flue shot!

[Native Floridian]

Florida sucks, enjoy another state.

[Jon]

I have health care; my employer pays it as part of my negotiated wage package. I am a Union electrician in Florida. I make decent wages on 40 hours of work. It isn’t socialism… it’s the very best of capitalism. Bargain for your labor… it is a simple thought and it worked very well in the past to create the middle class. But now the middle class thinks they are too good and too important to admit we are slipping into the poor house. Unite for Change! Together we can fix this problem.

[Eric]

I'm from Canada where socialized medicine means everyone gets equally bad, rationed health care. My grandmother had a stroke and had to wait 2 years in a hospital before she could get therapy. My father died from an aneurism. He was on a gurney in the ER hallway for 16 hours before seen by a doctor.

But all that care was free. Well, not if you include ridiculusly high taxes to pay for it. If health care was nationalized, you would still have the cost deducted from your paycheck. It would be the same $, or more, as your current premium (employee + employer contributions), but as taxes instead.

And then you have the government taking on the role of the insurance companies, but without appeal and without another provider to switch to if you have problems. And the government gets to decide what they will pay for, how much a doctor's salary would be, etc.

Lastly, only Canada and Britain have government-only health care. The rest of Europe has a private system and a public system. Don't even talk about Cuba. That isn't even an industrialized country. The health care is free for all, but a witch doctor would be as effective. The Cuban system would work here for a few dollars a year, if you want unsterile conditions. You get what you pay for.

[Rita]

Generic medications are a great way to keep your prescription drug costs down. I’ve seen ads on TV for Caduet. It has two ingredients. One is Amlodipine and the other is Atorvastatin. With my RxDrugCard I can get 30 tablets of Amlodipine for $9 and 30 tablets of Simvastatin for $9. I’ll bet they are charging more than $18 for this new drug! The unthinking public is going to pressure their doctors into giving them something just because it’s new, when something old or generic would do the job for cheaper.