Rising Connecticut Health Insurance Premiums for Workers

Rising Premiums for Employment-Based Health Insurance

In Connecticut, health insurance premiums for employment-based health insurance rose rapidly for both individuals and families from 2000 to 2007. Average premiums rose from $3,057 to $4,671 for individuals and from $7,292 to $13,173 for families (these numbers include both the employer and the worker share of premiums) (Tables 1 and 2). During this eight-year period, premium costs borne by workers alone for family coverage rose from $1,531 to $3,122 (an increase of 103.9 percent), and for individual coverage, these costs rose from $529 to $915 (an increase of 73.1 percent) (Tables 1 and 2).

Rises in Workers' Premiums Outstrip Increases in Earnings

While health insurance premiums rose rapidly, median earnings for Connecticut's workers grew slowly. As a result, average health premiums for family coverage rose 8.2 times faster than median earnings from 2000 to 2007 (Table 4).