Premiums rise less than last year's growth pace, but still outpace inflation and worker earnings, survey says.
September 11 2007: 9:32 AM EDT
NEW YORK (CNNMoney.com) -- Health insurance premiums in 2007 rose 6.1 percent, the lowest growth rate in eight years but still well above inflation and worker earnings, according to the latest annual survey from the Kaiser Family Foundation.
It was the fourth consecutive year of slowing growth and the lowest rate of growth since 1999, when premiums increased 5.3 percent.
Average annual costs
Premiums and levels of worker contributions for family coverage.
Total Premium Worker Contribution
PPO $12,443 $3,236
HMO $11,879 $3,311
Source:Kaiser Family Foundation
Note: PPO is preferred provider organization. HMO is health maintenance organization.
Since 2001, however, premiums for family coverage have increased 78 percent, while wages have gone up 19 percent and inflation has gone up 17 percent.The number of employers offering health care benefits was essentially unmoved at 60 percent, down from last year's 61 percent.
Employees' annual average cost for single coverage is $4,479 and $12,106 for family coverage. Single workers on average pay $694 of the cost out of their own pockets, while worker contributions for family coverage is $3,281.
According to the survey, 95 percent of firms with 50 or more employees offer health insurance, while smaller firms of 3 - 9 workers are least likely to offer benefits (45 percent).
http://money.cnn.tv/2007/09/11/pf/health_costs_kaiser/index.htm