When it's annual health insurance enrollment time, Mark and Christine Leon of Pasadena pull out fat Manila folders holding last year's medical records and health expenses. They sit at their plastic tablecloth-covered dining room table with a calculator, pencils and pads of paper making their best guesses at what next year's medical needs will be.
They are among the 158 million Americans who get health insurance coverage through their employers. Mark, 47, is a mechanical design engineer at Northrop Grumman. Christine, 49, is a stay-at-home mother, and they and their three children, ages 17, 13 and 10, are all insured through Mark's company.
First and foremost, Christine says, "we are so thankful to have this. It means so much." And Mark echoes, "I can't imagine how difficult it would be to live without it."
But even for families who have good health insurance, the rules and the costs are so different across companies and states that it's almost as though each of those 158 million people has a unique buying decision to make.
Most Americans are aware that they could be just a pink slip or a divorce away from losing their insurance. In a 2007 survey by the Harvard School of Public Health and the Kaiser Family Foundation, Robert Blendon, professor of health policy at Harvard, found that 26% of people say they are worried about losing their health insurance.
The worry is not unfounded. The number of uninsured Americans increased by 8.6 million between 2000 and 2006, according to the U.S. Census Bureau. During that same time, the percentage of employers who offered health insurance to their employees dropped from 69% to 61%, according to surveys by the Kaiser Family Foundation.
But those with employer-sponsored coverage have a lot of decisions to make, and some guesses to hazard. How healthy are family members? Does anyone anticipate needing specialty care for which they'll want flexibility? How much are they willing to pay for increased choices?
One way to begin looking at the cost of health insurance to families is through averages. The average annual premium in 2007 for employer-sponsored health insurance was $4,479 for single coverage and $12,106 for family coverage, according to an annual survey by the Kaiser Family Foundation. The survey also found that a minority of companies pay the whole thing, but 80% of workers with single coverage and 94% of workers with family coverage contribute to the total premium. And the average annual contribution for single workers is $694, while those with family coverage contribute $3,281.
