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Eroding coverage for seniors, rising premiums for all
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11-8-99 Menlo Park, Calif. Health insurance premiums are increasing faster than in previous years and small businesses that provide health insurance have been hardest hit by the trend, according to a study released last month. The 1999 Annual Employer Health Benefits Survey, conducted by the nonprofit Kaiser Family Foundation and the Health Research and Educational Trust, found that businesses with fewer than 10 employees experienced the most significant increase in premiums, a nearly 10 percent jump since the spring of 1998. Mid-size and large businesses faced more modest rate hikes-about 6 and 4 percent respectively-though both groups experienced increases at least twice the 2 percent annual rate of inflation, the survey said. The study also found that retiree health benefits for employees 65 and older are on the downswing, declining 13 percent in the last eight years. Only 8 percent of businesses with fewer than 200 workers offer retirement health insurance, said Missy Krasner, spokesperson for the Kaiser foundation. "Small businesses and the elderly are being hit the hardest," Krasner said. "Premium costs are rising and employers are trying to cut costs. They do that by cutting benefits for the population that needs them most." Diana Bianco, staff attorney for the West Coast regional office of Consumers Union, a legislative advocacy group, described the findings as "very alarming." Bianco expects the number of uninsured workers and retirees in the country to grow beyond the current 44.3 million until the government addresses the situation. Washington is paying more attention to the issue. House Majority Leader Dick Armey, R-Texas, said the Legislature should declare 2000 "the year of the uninsured." Armey and Rep. Pete Stark, D-Calif., have been working on a bipartisan bill that offers tax credits to help citizens afford insurance. But it's unlikely legislation will be passed this year, said a spokesperson for Stark, and the sides are still far apart on the issue.
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