Health insurance's stifling pressure and how PA could have a comparative advantage

The Inquirer reported this week that health insurance costs about the same as an economy car to cover the family each year.

Some standout quotes from the piece by Jane Von Bergen:

Health insurance premiums for the average family topped $12,000 in 2006 - more than the cost of an economy car - according to an annual survey released yesterday.
...
"It's the growing anxiety on the part of the public which is moving health care up the political agenda," said Drew Altman, president and chief executive officer of the California-based foundation.
...
Annual premiums average $12,106 for families, with workers, on average, picking up $3,281 of the cost. Coverage for singles costs $4,479, with individuals paying $694.

Workers in companies with fewer than 200 employees pay a larger share of the premiums for family coverage than do their counterparts in larger companies.

The percentage of small companies offering coverage is declining, down to 45 percent for businesses with fewer than 10 employees. Coverage in midsize companies also is on the decline.

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The fact that we've got a huge proposal out there to get a bunch of uninsured people covered and to give an inexpensive, subsidized insurance option for small employers, will make a big difference in lowering the average cost of insurance here.

Modestly speaking, insurance rate payers costs are hiked at least 6% as they pay for uninsured patients at hospitals. Additionally, the loss-ratio legislation that's out there (saying insurers can only put 15% of their collected premiums to administrative costs and profits).

The fact is, many Philadelphia legislators aren't in the right place on this issue. As we've been talking to them, we've been hearing ridiculous things like "not many constituents are talking to me about health" or "it costs too much money."

I don't imagine the numbers on what it costs to insure families are all that different in other major urban areas than it is here. We're several steps ahead, though, in having an innovative plan drafted to lower the costs of insuring people here.

Any way folks reading this can let their legislators know that they should act to register their support with the Administration for the Prescription for Pennsylvania.

Our shot at biting this particular apple is only going to last a little while. We need to nail this down and make it happen.
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The Russellian Incorporated Innovations Corporation

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