While the rate of growth for group health care costs has slowed recently, the growth rate is still in double digits. Premium increases are now about four times the annual rate of inflation. The consequences of spiraling rates are that fewer employees are being covered by health insurance. Over the period from 1999 to 2004, there were fewer contractors, mostly smaller contractors, offering health care coverage to their employees.
Nearly all employees who were covered ended up paying more for health insurance while also forking over higher deductibles and co-pays. The expense of coverage for a family today is about $10,000 per year, which is almost equivalent to a minimum wage salary.