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The Honolulu Advertiser
Posted on: Friday, October 24, 2008

Health insurance premiums in Hawaii outpacing income

By Dennis Camire
Advertiser Washington Bureau

OTHER FINDINGS

The study by Families USA also reported:

  • For individual health coverage in Hawai'i, the employer's portion of annual premiums increased about 55 percent, to $3,378 from $2,176. The worker's portion for single coverage jumped to $388 from $190, an increase of 104 percent.

  • More people nationwide are going into debt because of higher healthcare costs, with more than half of bankruptcies due in part to medical costs.

  • Hawai'i family premium costs increased from 5 percent of a median worker earnings in 2000 to 8.4 percent in 2007.

  • Nationally, family coverage costs rose by an average of 78.3 percent, while worker earnings grew by 14.5 percent.

  • The national numbers translated into premiums rising 5.4 times faster than median earnings. That compared with 3.4 times faster in Hawai'i.

    LEARN MORE

    Families USA: www.familiesusa.org

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    WASHINGTON — Health insurance premiums for Hawai'i families increased more than three times faster than workers' salaries from 2000 to 2007, according to a study released yesterday.

    The Families USA study found that annual premiums for family healthcare coverage provided through the workplace in Hawai'i increased to $10,001 from $6,047 during the period — more than 65 percent.

    During the same time, the median salaries of workers increased to $31,252 from $26,180 — more than 19 percent, according to the study.

    Families USA, a national group that advocates affordable healthcare, said Hawai'i families are paying an increasing share of their income for health insurance, and in some cases, getting less for it.

    "It's taking a larger and larger slice out of your family budget," said Kathleen Stoll, deputy executive director for the Washington-based group.

    The group reported that employers are also grappling with the higher premiums; shifting more of the premium costs to workers; and considering health coverage with lower premiums but fewer benefits or higher co-payments.

    As a result, the average share of annual premiums that is paid by workers for family coverage has more than doubled to $2,630 from $1,311.

    The average cost paid by Hawai'i employers for family coverage rose to $7,371 from $4,735, or by about 56 percent.

    "The study's findings of the situation in Hawai'i is a reflection of what has been happening nationwide for more than a decade," said Sen. Daniel K. Inouye, D-Hawai'i.

    Inouye said that is why he has worked for years with Sens. Edward M. Kennedy, D-Mass., and Ron Wyden, D-Ore., on comprehensive healthcare legislation.

    Polls show almost three-quarters of voters nationwide rate healthcare as a very important issue for the presidential campaign. Families USA said its national report demonstrates why federal leadership and healthcare reform should be the country's No. 1 domestic priority.

    Democratic nominee Sen. Barack Obama's proposal would subsidize coverage for millions who might not be able to afford healthcare otherwise. He also would give refundable tax credits to small businesses that offer healthcare plans.

    Under his plan, GOP nominee Sen. John McCain would give individuals more control over healthcare spending and provide tax credits to help people buy insurance.

    "I agree with Sen. Obama that healthcare should be viewed as a right, not a privilege," said Rep. Mazie Hirono, D-Hawai'i. "The current healthcare system in this country is not working for patients, doctors, or employers. Changes need to be made."

    Hirono said lawmakers should be open to considering any option that could provide better, more affordable healthcare and examine what states and other countries are doing.

    "This is a complex issue, and it requires dedicated people to work across party line to deliver solutions," she said.

    The study said that the number of uninsured persons under age 65 in the state is about 100,000, about 9.2 percent of that population, the study said. However, the state Department of Human Services says just 7.5 percent of Hawai'i's people under age 65 are uninsured — the lowest rate of uninsurance in the nation.

    "Would I say Hawai'i is in better shape than the rest of the nation? Yes," said Stoll.

    "Would I say Hawai'i is in good shape? No. It (health insurance) is still taking a bigger and bigger piece of the family budget pie."

    The study is based on data from the Census Bureau, the Department of Labor and the Department of Health and Human Services.

    Advertiser writer Greg Wiles contributed to this report.

    Reach Dennis Camire at dcamire@gns.gannett.com.