FACT SHEET:

							                          HEALTH CARE FACT SHEET

      How Much You Pay; How Much Your Employer Pays

Issue Statement

        Most Americans are covered by health insurance through their employers, and
        many companies pay for a large portion of the cost of health care for their
        employees. As a result, consumers are largely shielded from the real costs of
        health care and are often unaware of how their own health-related actions affect
        overall costs. Premiums, copayments and deductibles are rising to cover
        advances in hospital care, medical technology, and increasing prescription drug
        prices. We must make sure that the decisions we make to get well and stay
        healthy produce the best outcome for the amount we’re spending.

Key facts, national statistics

              For every dollar employees spend on health care, on average, employers
               spend five. (Blue Cross and Blue Shield Association, “Consumer Driven
               Healthplans,” June 2002.)

              In 2002, 84 percent of health insurance premiums for single coverage plans
               were paid by employers. 73 percent of premiums for family coverage plans
               were paid by employers. (The Kaiser Family Foundation and Health
               Research and Educational Trust, “Employer Health Benefits Survey,”
               September 2002.)

              53 percent of all employers say that health insurance is the benefit that
               causes their companies the greatest cost concern. (The Kaiser Family
               Foundation and Health Research and Educational Trust, “Employer Health
               Benefits Survey,” September 2002.)

              The cost of health insurance is on a steady upward path. From Spring of
               2001 to Spring of 2002, premiums for employer-sponsored health insurance
               increased by an average of 12.7 percent, the highest rate of growth since
               1990. (The Kaiser Family Foundation and Health Research and Educational
               Trust, “Employer Health Benefits Survey,” September 2002.)



8710.738-503                                                                                1
              In 2002, employers absorbed the biggest annual cost increase in health
               benefits since 1990. Mercer Human Resources Consulting, “Rate Hikes,”
               December 2002.) The average health benefit cost per employee rose 12.7
               percent in 2002. (The Kaiser Family Foundation and Health Research and
               Educational Trust, “Survey of Employer-Based Health Plan,” 1999-2002.)
               Employers expect their costs to rise another 15.4 percent on average in 2003.
               ((Hewitt Associates, “Health Care Cost Increases,” October 2002.)

              Despite the size of the increase, the average employee contribution as a
               percent of premium did not rise in 2002. However, 25 percent of all employers
               – and 49 percent of large employers – say that employees will pay a larger
               share of health plan costs in 2003. (Mercer Human Resources Consulting,
               “Rate Hikes,” December 2002.)

              While employers continue to carry the greatest portion of health insurance
               costs, employees contributed an average of 27 percent more per month for
               single coverage and an average of 16 percent more per month for family
               coverage between 2001 and 2002. (The Kaiser Family Foundation and Health
               Research and Educational Trust, “Employer Health Benefits Survey,”
               September 2002.)

              Deductibles and copayments increased as well. For example, in-network
               deductibles in PPO plans went up by an average of 37 percent while
               deductibles in conventional plans rose by an average of 38 percent . In HMO
               plans, the number of employees who make a copayment of $15 or more
               increased from 26 percent to 40 percent. (The Kaiser Family Foundation and
               Health Research and Educational Trust, “Employer Health Benefits Survey,”
               September 2002.)



Statements from key facts

              Talk with your doctor to make sure you are making the appropriate decisions
               in your personal life to stay healthy, using generic drugs when possible, and
               fully exploring treatments that help keep your health care costs down.




8710.738-503                                                                                   2
Editorial copy

        Most of us are shielded from the heavy burden of the full cost of medical
        procedures, treatments and drugs. That’s because employers spend, on
        average, five times more than employees do for health care. But the costs of
        advanced hospital care, the latest technologies and new medicines are rising
        higher than many employers can afford. In this sluggish economy, businesses
        are struggling to pay for the steep increases in health insurance premiums and
        some are looking to employees to assume a greater responsibility. Fortunately,
        there are simple things we can do to help keep health care affordable for
        everyone.

        Health expenditures are expected to nearly double over the next ten years. The
        costs of the latest technologies, new medicines and advanced hospital care are
        at an all-time high. We will all share in the increased costs of better health care,
        so we all have a role to play in keeping it affordable. As consumers, we should
        discuss all treatment options with our doctors. Ask if generic drugs are available
        when we need prescription medicine. Not only will we keep our own costs down,
        we’ll help keep health care affordable for everyone. Visit www.bcbstx.com for
        more information about keeping health care affordable.

Links to other existing programs and sources

        Henry J. Kaiser Family Foundation: www.kff.org

        Employee Benefit Research Institute: www.ebri.org

        Blue Cross and Blue Shield Association: www.bcbs.com




8710.738-503                                                                                   3