Throughout the first eight years of the new millennium, health care costs have skyrocketed, while working families’ wages have stood still, putting a significant strain on family budgets. Families USA released a report examining what these trends mean for working families.
For family health coverage provided through the workplace in North Carolina, annual health insurance premiums in the 2000-2007 period rose from $6,649 to $11,618—an increase of $4,969, or 74.7 percent. Between 2000 and 2007, the median earnings of North Carolina’s workers increased from $23,080 to $26,316—an increase of $3,236, or 14 percent.
According to the report, the disproportionately high increases in insurance premiums occurred despite the provision of “thinner coverage” to workers—coverage that offers fewer benefits and/or that comes with higher deductibles, copayments, and co-insurance. As a result, North Carolina families are paying more but receiving less in health coverage.
