Imagine wanting to buy a new Harley-Davidson motorcycle and then finding out that the same amount of money covers your family’s healthcare costs for one year. This is actually more than just a nightmare scenario. An August 2019 analysis of healthcare costs by the Kaiser Family Foundation, a nonpartisan organization, found that overall job-based costs for a family of four is $22,000 annually. This includes the employer’s coverage plus out-of-pocket costs and premiums paid by families, the latter of which totaled about $7,726 last year.
In the past ten years, the cost of health care for families has increased at double the rate of wages and at three times the speed of inflation. The figures represent a 67% increase in the cost of healthcare since 2008.
Approximately 50% of U.S. residents have health insurance provided through their employer, with large companies paying about two-thirds of a family’s costs. Escalating deductibles have been the main drivers, as far as the significant rise in the expense of healthcare for families. The increased number of insured workers required to meet an annual deductible has been significant, as has been the total amount of deductibles.
Obviously, a greater and greater portion of household budgets is spent on healthcare, which means continuing financial strain for countless families. The sustainability of the current healthcare system and whether employer plans will be affordable in the long run is called into question.
For many businesses, these statistics can point to a growing demand for help from a PEO service. PEO Broker LLC has a proven track record of providing solutions that include affordable health insurance, even with premiums are at an all-time high.
Contact me today for help with health insurance costs. Few companies and individuals can, together, buy a new Harley-Davidson, so to speak, year upon year. We can help.