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Why the Cost of Health Insurance More than Tripled in Two Decades

Posted by Bobby Brown on February 24, 2023 - 4:11pm

In 1999, Americans paid an average $2,196 a year for typical employer health insurance. By 2005, health insurance cost $4,024 a year, up over 80%. In comparison, inflation gained about 17%. Scroll down to track the cost of health insurance vs. inflation through 2021.

By 2010, health insurance cost $5,049 a year, up 130%. Inflation rose about 30%.

By 2015, health insurance cost Americans $6,251 a year, a gain of 185%. Inflation was up about 40%.

In 1999, Americans paid an average $2,196 a year for typical employer health insurance. By 2005, health insurance cost $4,024 a year, up over 80%. In comparison, inflation gained about 17%. Scroll down to track the cost of health insurance vs. inflation through 2021.

 

By 2010, health insurance cost $5,049 a year, up 130%. Inflation rose about 30%.

By 2015, health insurance cost Americans $6,251 a year, a gain of 185%. Inflation was up about 40%.

By 2021, health insurance cost $7,739 a year, a rise of over 250%. Inflation was up about 60%.

Looked at another way, in 1999 the average American worked about 2 weeks to pay for health insurance. In 2020 that grew to about 7 weeks.

The rising cost of health insurance is largely accounted for by the growing cost of treating Americans’ medical conditions. Between 1999 and 2020, the average cost of employer health insurance grew 240%. Over the same period, the cost of healthcare itself rose 224%.