Posted by Chris O'Sullivan
We all know rising health care costs are a serious issue in today's economy, but they are about to get worse. U.S. businesses that currently offer their employees health insurance will not be pleased to find out that the average cost of insuring an employee will rise 7% from last year (2009). Average spending per employee is expected to rise to over $10,000, the first time this figure has reached five digits.
Workers will bear the blunt of these price increases due to higher premiums and co-pays. After an 8% increase in cost to employees in 2009, a 10% increase is expected in 2010. Since the year 2000 health care costs have risen 149%, whereas real wages have only gone up 37% over that same time. If reform is not enacted, experts expect the cost of health care costs will rise to $29,000 per employee in the year 2020.
President Obama has recently introduced his plan to reform health care and make it more affordable both for those who are currently paying high premiums, and those who do not have any health insurance. According the Wall Street Journal, as many as 14,000 Americans are losing their health insurance as a result of job cuts. A bill is expected to be signed before the end of the year.
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