States Plan to Cover Kids Under New Health Plans

Health insurance costs continue to rise, and both employers and employees are feeling the pinch. The state governments of California, Minnesota and Wisconsin are among those who have expressed interest in adopting plans to offer varying forms of statewide health insurance coverage. According to the Compensation Data annual survey of more than 5,300 employers, 41.2 percent of families can expect to pay over $250 for their monthly health insurance premiums.

With 99.9 percent of employers offering health coverage to their employees, 75.6 percent of employees spend between $1,800 and $3,000 a year to provide health insurance for their families, increasing 6.6 percent from last year. In comparison, the majority of employers, 78.6 percent, paid more than $450 per family in monthly health insurance premiums or $5,400 annually on flat amount plans.

Families are given little reprieve in their annual deductibles. The largest percentage of plans offered, 47.4 percent, provide an annual deductible of $900 or more. After deductibles are satisfied, 50.9 percent of employees on PPO plans are responsible for 16 to 20 percent of co-insurance or basic services. In comparison, 25.3 percent of those on HMO plans spend the same percentage on those services.

While some states are considering new ways to provide health care coverage, the cost of health insurance remains high for working families and organizations, said Amy Kaminski, manager of marketing programs for Compdata Surveys. It remains to be seen whether legislation will help to lower health insurance costs for those with access to it.

States Covering Kids
Statewide coverage for uninsured children has become a hot topic in recent news. Some states are proposing plans to follow in Illinoisís footsteps, which debuted ìAll Kidsî in July 2006. The plan offers free and reduced health insurance to kids who do not have access to it. Pennsylvania recently signed a bill to expand the health care coverage offered under their Children’s Health Insurance Program (CHIP) with a new plan called ìCover All Kids,î which aims to provide insurance to those who are not covered.