Zpryme: Intelligent Research for an Intelligent Market

Austin, TX - (Zpryme Health Industry) – 12/29/09 – Before Barak Obama’s Hawaiian holiday, the president took part in overseeing the Senate's passage of a "landmark" health-care legislation which he pledged will deliver on the promise of real, meaningful health insurance reform. Just in time, Zpryme released a health care report in the wake of this milestone event. Read the following to obtain the full United States report and the latest findings:

**Download** Zpryme Health Care and Insurance report: here

U.S. Health Care Costs
From 1998 to 2008, U.S. inflation adjusted health care costs increased from $2,514 to $2,976. During this time period, inflation adjusted health insurance costs (used to read: inflation adjusted heath care insurance) increased from $1,206 to $1,653. In 2008, health insurance costs accounted for 56.0% of total health care costs versus 48.0% of total health care costs in 1998. 

U.S. Health Care Costs by Age
As expected, higher inflation adjusted health care costs are strongly related to the age of consumers. From 1998 to 2008, inflation adjusted health care costs for consumers age 55-64, 65-74, and 75 and up increased by $975, $905, and $532, respectively. Consumers under 25 and 25-54 experienced the smallest increases in their health care costs when compared to the other age groups in this analysis.  

U.S. Health Insurance Costs by Age
From 1998 to 2008, inflation adjusted health insurance costs for consumers age 65-74 and 75 and up increased by $855 and $798, respectively. Consumers age 25-54 experienced the smallest increases in their health insurance costs when compared to the other age groups in this analysis.

Health Insurance as a Percent of Total Health Care Costs
Across all age groups, from 1998 to 2008, health insurance costs accounted for a larger amount of total health care costs. As expected, health insurance costs as a percent of total health care costs were the greatest for consumers age 65 and up. Interestingly, consumers age 55-64 paid the least amount of health insurance costs as a percent of their total health care costs.  

U.S. Changes in Income, Health Care, and Health Insurance Costs
From 1998 to 2008, among all U.S. consumers, inflation adjusted income, health care, and health insurance costs increased by 16.0%, 18.0%, and 37.0%, respectively. Health care and health insurance costs increased the most among 55-64 year-olds. Consumers under 25, 65-74, and 75 and up also experienced a significant increase in health insurance costs. 

U.S. Health Care Costs as a Percent of Income
Among all U.S. consumers, health care costs as a percent of total income increased from 2.2% to 2.6% from 1998 to 2008. In 2008, health care costs as a percent of total income were highest among consumers age 65 and up. 

Western Metro Areas
Among the 5 Western metro areas in this analysis, Seattle had the highest health care costs in 2008 ($3,373) while San Diego had the lowest ($1,840). From 1998 to 2008, inflation adjusted health care costs in Los Angeles, San Francisco, Seattle, and Phoenix increased by 19.6%, 41.2%, 55.3%, and 39.3%, respectively. During this time period, health care costs in San Diego decreased by 22.2%.

Northeastern Metro Areas
Among the 5 Northeastern metro areas in this analysis, Washington, D.C. had the highest health care costs in 2008 ($2,996) while Baltimore had the lowest ($2,571). From 1998 to 2008, inflation adjusted health care costs in Washington, D.C., Baltimore, New York, Philadelphia, and Boston increased by 1.3%, 21.7%, 14.4%, 20.7%, and 31.3%, respectively. 

Southern Metro Areas
Among the 4 Southern metro areas in this analysis, Houston had the highest health care costs in 2008 ($3,002) while Miami had the lowest ($1,933). From 1998 to 2008, inflation adjusted health care costs in Miami, Dallas-Fort Worth, and Houston increased by 3.2%, 0.4%, and 17.5%, respectively. During this time period, health care costs in Atlanta decreased by 3.6%.  

Midwestern Metro Areas
Among the 4 Midwestern metro areas in this analysis, Minneapolis-St. Paul had the highest health care costs in 2008 ($3,365) while Detroit had the lowest ($2,432). From 1998 to 2008, inflation adjusted health care costs in Chicago, Detroit, Minneapolis-St. Paul, and Cleveland increased by 27.1%, 14.8%, 16.6%, and 82.1%, respectively.  

U.S. Metro Area Income Changes
After adjusting for inflation, all 18 U.S. metro areas in this analysis experienced an increase in their average annual income before taxes from 1998 to 2008. During this time period, Chicago, Baltimore, Washington, D.C., and Houston experienced the greatest increase in income. Minneapolis-St. Paul, Miami, Dallas-Fort Worth, and Detroit incomes increased the least among the 18 metro areas. 

U.S. Metro Area Health Care Cost Changes
After adjusting for inflation, 16 out of the 18 U.S. metro areas in this analysis experienced an increase in their health care costs from 1998 to 2008. During this time period, Cleveland, Seattle, San Francisco, Phoenix, and Boston experienced the greatest increase in their health care costs. Only Atlanta and San Diego experienced a decrease in their health care costs during this time period.   

Differences Between Health Care Cost and Income Changes
From 1998 to 2008, Cleveland, Seattle, San Francisco, Boston, Phoenix, and Minneapolis-St. Paul experienced the greatest increase in their health care costs relative to their increase in income. On the other hand, San Diego, Washington, D.C., Atlanta, and Baltimore experienced the greatest increase in their incomes relative to their increase in health care costs. 

Health Care Costs as a Percent of Income by Metro Area
From 1998 to 2008, health care costs as a percent of total income increased in 10 out of the 18 metro areas in this analysis. In 2008, health care costs as a percent of income were highest for consumers in Cleveland and Minneapolis-St.Paul and lowest for consumers in San Diego and Washington, D.C. 

U.S. Metro Area Health Care Costs
Cleveland and Seattle have experienced the largest net increases in their health care costs from 1998 to 2008. During this time period annual average health care costs in Cleveland increased from $2,005 to $3,651 and from $2,171 to $3,373 in Seattle. In 2008, Miami and San Diego paid the least in health care costs among the 18 metro areas in this analysis. 

"Clearly, getting spiraling health insurance costs under control is the key to stabilizing health care costs for all Americans ... some Americans have seen their incomes grow just as fast as or faster than their health care costs ... thus the financial adversity caused by increasing health care costs is not equally shared among all Americans", said Jason S. Rodriguez, CEO and Director of Research for Zpryme.  

Americans now have to make more incremental economic choices such as paying their insurance co-payment to see a doctor or to purchase a day’s worth of groceries for their family. In fact, Americans age 65 and above are most likely to face such economic choices as their health care costs as a percent of their income are almost three times higher than other Americans.

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