Thursday, October 9, 2008

Michigan's Group Insurance Premiums Rise, Now Highest in the US

By Ethan Calvin

It is known that the state of Michigan already has plenty to worry about. State residents have been fighting a slow state economy for a couple years. Workers in the auto industry try to avoid layoffs and forced early retirement, while college grads are having a hard time finding their first job.

Families USA, a health care research group, released a report that showed group health insurance rates are increasing more so than wages at the nations' fastest rate. From 2000 to 2007, wages only increased by 4.6 percent, while employer sponsored plans health insurance rates went up by 78.2 percent.

Workers in Michigan are also now paying proportionately more than their employers, wrote an article in the Detroit Free Press. From 2000 to 2007, the amount employers paid for health insurance went up by 63.3 percent. But in the same time period, the amount workers paid for coverage increased by a whopping 170.6 percent, according to the Free Press article.

"[T]he whole system is being stretched. [This report is] another cause to look at the impending collapse of the whole health care system," said State Representative John Dingell. So what kind of health insurance reform will residents of Michigan choose? It seems as if they have already made their decision.

Early on, Michigan was considered a battleground state in this election. But Republican Senator John McCain announced yesterday he is pulling his campaign from the state, after a trend of decreasing numbers in the polls over the past couple weeks. That all but cedes the Wolverine State to Democratic Senator Barack Obama. - 15224

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