Health care costs are now approaching 15% of our national economy and
economic repercussions have been felt by most American families as employers are unwilling to absorb bulk of health care cost burden. In 2004, employer health insurance premiums increased by 11.2% - nearly four times rate of inflation. The annual premium for an employer health plan covering a family of four averaged nearly $10,000. The annual premium for single coverage averaged $3,695. Health insurance premiums will rise to an average of more than $14,500 for family coverage in 2006.
In 2004, health care spending in United States reached $1.7 trillion, and is projected to reach $1.9 trillion in 2005. Health care spending is 4.3 times amount spent on national defense.
Overall national health care costs will increase further with implementation of Medicare prescription drug coverage. Too many Americans are uninsured while even a greater percentage have no insurance at all. Uninsured individuals also present a problem for hospitals and other providers who must provide treatment in catastrophic situations without compensation.
Many employees receive restricted coverage and insurance plans that are negotiated between employers and insurance providers limit coverage to a single insurance carrier or an HMO. Prescription drugs are fastest-growing part of nation's health care expense. Pharmacy bills have become a significant item in budget of most families.
For 37% of Americans without prescription coverage, problem is critical. Especially for seniors who constitute 12% of population but use 37% of prescription drugs. The rest especially those without health insurance, is significantly affected by high drug prices.
