2006 State Report > Economics > Health Care Costs
Economics: Health Care Costs
Health care spending has accelerated in recent years, growing 7.9 percent in 2004 alone. These increases affect individuals, businesses and government in many ways, including higher insurance premiums, fewer retiree health benefits and more people living without health insurance.
In 2004, health insurance premiums went up 11.2 percent, the fourth double-digit increase in as many years, and continued to outpace general inflation and wage growth. The increase in health care costs has lead to a major decrease in the percentage of employers offering health benefits to future retirees - from 66 percent of large firms in 1988 to just 36 percent in 2004. This trend is particularly important to the 50-plus population since access to health benefits impacts when an individual can retire, as well as how one plans for health-related expenses during retirement.
Adults under age 65 can lose their health insurance coverage for a number of reasons, including death of a spouse, separation or divorce from a spouse, downsizing, and retiring before age 65 without retiree health insurance benefits. Americans between the ages of 50 and 64 are especially at risk when they are uninsured. They are more likely than younger people to develop a chronic disease such as cancer, diabetes, and heart disease, but are not eligible for coverage through Medicare until age 65.
Between 2000 and 2003, the number of 50 to 64 year-olds in the United States who were uninsured grew from 5.2 million to 6.4 million. According to 2003 data from the Current Population Survey, 15.4 percent of South Carolinians between the ages of 45 and 64 were uninsured.
Health Insurance Coverage for Older Adults in South Carolina: 2003
| Age Range | Total Population | Insured | Uninsured | ||
|---|---|---|---|---|---|
| # | % | # | % | ||
| 45 to 54 | 568,039 | 478,870 | 84.3 | 89,169 | 15.7 |
| 55 to 59 | 209,768 | 186,701 | 89.0 | 23,067 | 11.0 |
| 60 to 64 | 187,627 | 151,447 | 80.7 | 36,180 | 19.3 |
| 65 to 80+ | 544,133 | 540,876 | 99.4 | 3,258 | 0.6 |
Source: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2004.