AFL-CIO

Costs Have Been Eating UpMore and More of Our

PAYCHECKS

And LOWERING OurStandard of Living

Here’s Why It Hurts

0%2%4%6%8%

10%12%14%16%18%

1988 1996 2002 2006

HEALTH INSURANCEPREMIUMS

OVERALL INFLATION

WORKERS’ EARNINGS

Premium Costs Rising Faster Than Wages or Inflation

2006 Kaiser Family Foundation Survey

America’s Health CareSpending Will Almost Double

IN 10 YEARS$12,782

$6,700

2005 Projected 2016

Per Person Health Care Spending, U.S. Average

Health Affairs 142-153, 2007

We’re Feeling the Squeeze — And So Are Our Employers

$1,620 $1,800 $2,136 $2,412 $2,661 $2,713 $2,973 $3,134

$4,731 $5,253 $5,818$6,656 $7,289 $8,167 $8,508 $8,972

2000 2001 2002 2003 2004 2005 2006 2007

EMPLOYEE CONTRIBUTION EMPLOYER CONTRIBUTION

Annual Premium Costs for Family Coverage

Kaiser Family Foundation Surveys, 2000-2006

As Costs Soar, More and More of Us

Lose Insurance

2000 2001 2002 2003 2004 2005 2006 2013

Children Adults

U.S. Census Bureau; Health Affairs Web Exclusive, 2/21/07

In Millions 56.0

46.944.843.543.442.039.838.4

Employer CoverageIs Drying Up—

Especially for Early RetireesEMPLOYERS THAT PROVIDE COVERAGE FOR RETIREES

1988

2006

Kaiser Family Foundation; Health Research and Education Trust

65%

35%