MEDICAL COSTS & INSURANCE PREMIUMS CONSUMING DISPOSABLE INCOME

October 7, 2004

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In the past four years, Americans have spent an ever-growing portion of their paychecks on health care and for the most part gotten less for their money, forcing millions into the ranks of the uninsured or personal bankruptcy, according to government figures and several independent assessments.

Nationwide, workers’ costs for health insurance have risen by 36 percent since 2000, dwarfing the average 12.4 percent increase in earnings since President Bush took office, the liberal consumer group Families USA reports in an analysis scheduled for release today. The number of Americans spending more than a quarter of their income on medical costs climbed from 11.6 million in 2000 to 14.3 million this year, according to the group.

For four straight years, Americans have paid double-digit increases in health insurance premiums, bringing the price for a typical family of four to nearly $10,000. Premiums paid by workers in 26 states and the District climbed 40 percent, according to Families USA.