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Annual Cost of Health Insurance

As of the end of 2009, the World Health Organization's annual study of its 193 member states found that the United States spent more money per person on health insurance than almost any other country in the world --- a whopping 15.3 percent of its gross domestic product. For purpose of comparison, Europe spends just 8.4 percent of its GDP while the eastern Mediterranean region spends 4.5 percent of its GDP. When broken down into actual numbers, one can achieve a better understanding of health care costs' economic impact on families and individuals.

  1. Healthcare Premiums for Families

    • In 2010, the average annual health insurance premiums for families in the United States was $13,770, according to a nationwide study conducted by the Kaiser Family Foundation, the Health research & Educational Trust and the University of Chicago's National Opinion Research Center. This is a rise of 3 percent compared to 2009's average of $13,375, and an increase of 114 percent when compared to the average in 2000.

    Healthcare Premiums for Single People

    • Those on single coverage for their health insurance paid an average of $5,049 in 2010, according to the study published by the Kaiser Foundation, et al. This adds up to a 5 percent increase when compared to 2009's numbers when the average of $4,824.

    Out-of-Pocket Expenses

    • Unlike premiums, which individuals must pay whether or not they go to the doctor or hospital, out-of-pocket costs are harder to quantify. These include cost sharing mechanisms like co-payments and deductibles, and can vary widely because there are so many variables depending on factors like the type of plan you're on and your personal health issues. HealthReform.gov, administered by the U.S. Department of Health & Human Services, reports that the average household pays for 17 percent of its medical needs out-of-pocket, while high-cost households, such as those with heart disease, cancer or diabetes, shoulder 43 percent of their health care out-of-pocket. With those numbers, the department estimates that the average middle-income, high-cost household spends 21 percent of their annual household income on health care services.

    Costs for Businesses

    • Some businesses spend money to help carry the health insurance cost burdens of their employees as an employee benefit. In a 2010 report, the U.S. Bureau of Labor Statistics noted that private industry businesses spent an average of $27.64 hourly on workers compensation. Approximately 70.6 percent of this went toward direct wages or salaries, while 7.5 percent of it went toward health insurance benefits for the worker.

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