Why Health Care Needed a Makeover

It’s simple: In recent years, rising premiums have forced union members to give up well-deserved wage increases to keep health care benefits intact. And all Americans are paying more and often getting less coverage.

Fixing the nation’s health care system couldn’t wait. AFSCME activists took the lead in this fight and won.

Strong union contracts give AFSCME members quality, affordable health care. So, why did we work so hard to help reform the country’s health care system?

It’s simple: In recent years, rising premiums have forced union members to give up well-deserved wage increases to keep health care benefits intact. And all Americans are paying more and often getting less coverage. We led a national campaign to protect and improve health care for those who have it, and help provide it to millions of Americans who don’t.

Insurance Companies Profited Amid the Crisis

In the last few decades, insurance companies raked in the dollars. In 2009, the industry’s five largest companies registered an all-time high combined profit of $12.2 billion — a 56 percent increase from the previous year. This, in spite of providing coverage to 2.7 million fewer people than in 2008. Out of the five companies, four of them — Cigna, Humana, UnitedHealth Group and WellPoint — saw an increase in profits. Cigna’s take was a whopping 346 percent growth!

In fact, four of the five companies insured fewer people through private coverage. UnitedHealth alone insured 1.7 million fewer Americans through employer-based or individual coverage.

Premiums Soared

Since 1999, premiums have increased by 131 percent, according to a report by the Kaiser Family Foundation and the Health Research and Educational Trust. These costs threaten the economic security of working families and strain federal and state budgets. Employer-sponsored health insurance for families has grown from an average of $5,791 to $13,375 a year.

This increase was reflected in our nation’s total spending on health care, which doubled between 1996 and 2006. It is currently projected to constitute 25 percent of the gross domestic product by 2025.

We had to act, and we did. Most Americans understand this reality because they experience it every day. Thanks to the hard work of AFSCME activists who helped lead the battle, we can now look to the future with optimism and start putting our health care system on the right track.