Health Care Costs

Health care costs have become a growing burden for America's families, as premiums and out-of-pocket expenses continue to rise at alarming rates. Left unchecked, health care costs will keep going up, forcing more and more American families into debt - and even into bankruptcy. According to public opinion polls, health care is now among the top domestic priorities. At the same time, the economy is taking a tumble. With gas prices exceeding $4.00 a gallon across the nation and millions of families struggling to make credit card and mortgage payments each month, rising health care costs add insult to injury when it comes to the pocketbooks of American families.

In addition, the growing burden of health care costs places employers (who provide insurance coverage to six out of 10 Americans) in a tough position. As the underlying costs of health care such as doctors' visits and prescription drugs go up, premiums increase and it becomes more difficult for employers to offer their employees quality, affordable health coverage. Faced with unmanageable costs, employers have three options: They can pass premium increases along to their workers, cut back on the benefits that they cover, or stop offering coverage completely. Unless health care costs are brought under control, this vicious circle is likely to continue.

Facts about Health Care Costs:

Premiums and Out-of-Pocket Costs Rising

• Between 2000 and 2007 alone, the average premium for job-based family coverage increased by more than 90 percent, rising from $6,351 to $12,106.
• The average worker's share of family health insurance premiums nearly doubled between 2000 and 2007.
• Between 2000 and 2006, premiums for family coverage grew 6.4 times more quickly than workers' earnings.
• One quarter of Americans report that paying for health care and/or health insurance is a "serious problem."
• More than half of voters polled say that making health care and health insurance more affordable is the top health care issue they want the presidential candidates to address.
• Six out of 10 insured Americans report that they have faced an increase in the costs that they are responsible for paying under their plan in the last year.

Spending on Health Care Services

• The average amount spent on delivering health care services to each American grew from $4,034 in 2000 to a projected $6,249 in 2007-an increase of 54.9 percent.
• Spending on prescription drugs more than doubled between 2000 and 2008, growing to a projected $247.6 billion.
• Spending on hospital services increased by nearly 80 percent between 2000 and 2008.