Report finds health-care premiums in Pa. and nationwide rose far faster than paychecks in the last six years.

Health insurance premiums have risen faster than wages in Pennsylvania over the last six years, according to a report released yesterday by Families USA, a nonprofit Washington consumer group that advocates for affordable health care.

But Rose Fasciocco, who runs the books for her husband's plumbing business in Springfield Township, Delaware County, doesn't need a report to tell her that.

"We used to cover our employees 100 percent," she said. "We wanted to set ourselves apart that way. But when we got our last increase, we had to start asking for a contribution."

Monthly premium costs have gone up 27 percent for Fosh Plumbing & Heating Inc. The Fascioccos haven't given anyone a raise close to that size.

In Pennsylvania, average annual premiums for family health coverage have risen from $6,721 in 2000 to $11,801 this year, an increase of $5,080. Median wages in that time rose from $24,834 to $28,145, an increase of $3,311, according to the report.

Families USA director Ron Pollack said his group had statistics for every state but was releasing them earliest in states where "there is greater interest due to campaigns." Both Pennsylvania and New Jersey have high-profile U.S. Senate races.

Families USA will release New Jersey statistics Monday.

"This is taking a larger and larger bite out of family budgets. It means more and more families are at risk of becoming uninsured or underinsured," Pollack said in a telephone news conference yesterday.

The commonwealth's premiums have risen faster than the national average. Nationally, premiums for family coverage increased 73.8 percent; in Pennsylvania they rose 75.6 percent.

Pennsylvania's wages also have risen faster than the national average - up 13.3 percent, compared with 11.6 percent nationally.

Pennsylvania's employers are covering less of the costs and providing fewer benefits than employers nationally, Pollack said, attributing this partly to the decline in unionized, industrial businesses in the state. Premium costs borne by employees for family coverage rose from $1,297 to $2,407, and premium costs paid by employees for individual coverage doubled from $373 annually to $762 in the six-year period.

Fosh Plumbing & Heating pays $3,091 a month in premiums to cover 12 people - owner Jimmy Fasciocco, six employees, and five family members. Last year, the same coverage cost $2,434, Rose Fasciocco said.

Fosh still covers its employees 100 percent, but employees are paying for the increase for their families - about $55 per month per family member.

"We're finding it harder and harder," Fasciocco said. "There's only so much you can increase your rates to your clients."

Shopping around doesn't help, she said. By the time she finishes analyzing the fine print, most of the plans are comparable. If the plan costs less, it probably provides less, she said.

Pollack said it was no wonder businesses and consumers were worried - not just in Pennsylvania, but across the nation. They "have had good reason to be concerned how [premium] costs are rising faster than earnings and faster than general inflation," he said. "Unless we get national action, I don't think it is going to change."

Pollack said there were 1,064,000 uninsured people in Pennsylvania.

Delaware is faring better than Pennsylvania, with premiums rising less than the national average and wages rising more. In Delaware, premiums grew 62 percent, compared with 73.8 percent nationally. Wages rose 13.9 percent, compared with 11.6 percent across the nation.

The study analyzes statistics from the U.S. Census Bureau and the Medical Expenditure Panel Survey conducted by the U.S. Department of Health and Human Services.

Premium Increases

Family coverage in Pennsylvania, employer-based health insurance, 2000-06*

Premiums by                                                           Dollar         Percent

source of payment                          2000         2006         change         change

Total premium spending per worker       $6,721       $11,801       $5,080          75.6%

(Employer and worker share)

   Share paid by employer                $5,424          $9,394       $3,970          73.2%

   Share paid by worker                   $1,297          $2,407       $1,110          85.6%

Individual coverage in Pennsylvania, employer-based health insurance*

Premiums by                                                           Dollar         Percent

source of payment                          2000         2006         change         change

Total premium spending per worker       $2,467          $4,236       $1,769          71.7%

(Employer and worker share)

   Share paid by employer                $2,094          $3,473       $1,379          65.9%

   Share paid by worker                   $373           $762       $390       104.6%

*Numbers may not add due to rounding.

SOURCE: Estimates prepared by Kenneth E. Thorpe for Families USA based on Medical Expenditure Panel Survey (MEPS) data.

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By Jane M. Von Bergen
Inquirer Staff Writer

Contact staff writer Jane M. Von Bergen at 215-584-2769 or jvonbergen@phillynews.com.

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