Back Button
Menu Button

Unsustainable!

David P. Lind BenchmarkWhat if Iowa families had to spend more than half their yearly income just to pay for health insurance—making it difficult to afford housing, food and clothing? Sound ridiculous? Think again.

Already in 2011, the average Iowa family health insurance premium gobbled up roughly 27% of estimated yearly household income of $49,985*. If current trends continue, that will grow to 58% in 10 years. Unsustainable?  You bet—for employers and employees.

Look at the numbers:

  • Health insurance rates in Iowa increased an average of 10.2% annually during the last five years, according to our Iowa Employer Benefits Study©. 
  • In 2011 the average annual family health insurance premium provided by Iowa employers was $13,295.
  • The average premium for family coverage in Iowa would increase 165% to over $35k a year by 2021 if current trends continue.

We all know that rising health premiums suppress employer profitability and ultimately employee take home pay (this is why unsustainable health trends are important to both employers and their employees).

Clearly, Iowa employers and their employees (and society in general) must find new and innovative ways to seek affordable health care without compromising the quality of care they expect to receive.

Does your organization have a sustainable strategy to avoid the projected increases?

This is a topic we’ll be talking about a lot here on the blog, as we explore possible solutions. 

* The 2009 Iowa Median Household income was $48,044, and was trended up by 2% annually to 2011.

 

Join the Conversation

*