Workers Face Higher Medical Premiums
News Tribune
November 17, 2002

As the mother of a teenager, Laura Sandoval knows accidents happen – like the time a few years ago when her son fell out of a tree and hurt his leg. That's why she can't afford to not carry health insurance.

But with premiums that eat up nearly a quarter of her take-home pay, the single mother says she can barely afford to keep the coverage.

Her monthly health insurance bill went up almost $ 80 this year, to about $ 330.

"If it does that again next year, there's no way I can pay it," said Sandoval, a Tacoma shuttle bus driver.

Chances are, though, next year's jump will be even bigger.

Nationally, the average amount employers pay for their workers' health coverage is projected to climb in 2003 by 15 to 20 percent, the highest increase in more than a decade. That would follow a 12.7 percent increase this year and an 11.2 percent jump in 2001.

In Washington, state insurance commissioner Mike Kreidler says companies and employees should brace for similar hikes.

Workers and retirees across the state are beginning to get the bad news now, as companies unveil plans and fees for the coming year.

. . .

The stock market slump is forcing insurance companies to raise premiums to offset investment losses, said Joanne Doroshow of Americans for Insurance Reform, a national consumer organization.

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