Health care premiums rise, outpace nation

COLUMBIA --- South Carolinians, take heart: Georgians might be even worse off than you when it comes to paying for health insurance.

Health care premiums rose seven times faster than incomes in Georgia, compared to 5.7 times faster in South Carolina, according to a report from Families USA, a consumer-health organization.

Dave Lemmon, spokesman for the Washington-based nonprofit, pointed to what the two states have in common: They both outpaced the national rate of 5.4.

From 2000 to 2007 family health care premiums in South Carolina rose by 76.1 percent, while median earnings rose by only 13.4 percent.

In Georgia both the premiums and earnings increased less than in South Carolina: There was a 72.5 percent increase in health care premium and a 10 percent increase in median salary, according to the report, which used data from the U.S. Census, the Department of Labor, and the Department of Health and Human Services.

Costs are rising despite coverage that offers fewer benefits, but sometimes with higher deductibles, co-payments, and co-insurance, according to the report.

"Families USA turns out really great information, but their report is just a part of the picture," said Nancy Pursley, of the Southern Institute on Children and Families, a Columbia-based nonprofit.

Whether individuals have access to care is also important, she said, adding that the South is home to a disproportionate number of uninsured children. The type of economy and the size of the employers is also a factor in the quality of coverage and the number of people who are insured, she said.

In South Carolina, for instance, the majority of employers are small businesses with less than 50 employees, Ms. Pursely said.