Employee Healthcare Costs Outpace Premium Hikes by as much as 121% from 2001 to 2009

WASHINGTON -- The amount employees paid for employer-sponsored health insurance increased by as much as 121% from 2001 to 2009, far outpacing the actual premium costs, according to a new report from the Agency for Healthcare Research and Quality (AHRQ). Data from the federal agency showed that the average annual cost employee-plus-one coverage in a private-sector employer-sponsored plans increased by 121% from $1,070 in 2001 to $2,363 in 2009. The premium cost to the employer for that policy rose just 65.7%, from $5,463 to $9,053.

The annual premium share for an employee with family coverage rose from $1,741 to $3,474, an increase just shy of 100%. The employer's premium for that kind of coverage climbed 73.5%. The smallest increase over the period was for a plan that covered just the employee. The worker's share of that cost increased 92%, from $498 to $957. The premium paid by the employer went up 61.6%. Both employers' premiums and employees' share of them rose faster than consumer price index over the time period -- the CPI rose 21.1% from 2001 to 2009. The data comes from estimates from the AHRQ-sponsored Medical Expenditure Panel Survey-Insurance Component, which is an annual survey of healthcare coverage offered by employers in the private sector and in state and local governments.

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