The employer healthcare costs in the United States increased 6.1 percent in 2007, from the previous year. According to the National Coalition on Healthcare, employers now pay a premium of around $12000 for a family of four. Similarly the average cost for a single individual accounted to nearly $4400. The impact of such an increase was also felt by the small businesses and corporations that had less than 24 workers. These entities saw a daunting increase of 5.5 and 6.8 percent respectively in healthcare costs in 2007.

Rapid Increase in healthcare costs

It is interesting to know that employers contributed nearly ten percent of the healthcare costs in major organization. If ten percent doesn't seem overwhelming then consider the fact that an employee of a large corporation had to pay nearly $3300 of their pay in healthcare costs. To be more precise the annual premium of healthcare costs far exceeds the gross income of the minimum wage worker that is slightly less than $11000. The annual survey in September 2006, from the Henry J. Kaiser foundation revealed that workers now pay $1400 more in healthcare costs than they did in year 2000. It should also be noticed that healthcare costs per worker has increased by nearly hundred percent in the six month period prior to 2006 when the inflation rate increased by only 24 percent and subsequent wage per worker grew by 21 percent.

Research revel more anomalies in our healthcare system

A study by Mckinsey & Company in 2004, "Will Health Benefit Costs eclipse profits?" stated that in near future the total profits of the employers will decrease on the face of rising healthcare expenditures. It is also troubling to find that the healthcare costs have increased more than four times the increase in wages, during the six years between 2000 and 2006. Now an employee contributes nearly 143 percent more to the health insurance premiums, than they did back in 2000. During the same year the average visits to doctors, medication and tests per insured worker increased by 115 percent. A study in 2003 by the Agency for Healthcare Research and Quality stated the out of pocket expanses of an average American younger than 65 years, averaged $2000 per annum.

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Healthcare costs are rising every year. In 2007, the basic costs associated with healthcare increased by 6.9 percent which is double the rate of inflation in United States. On average, a US citizen would spend around $7500 per year on medical expenses. These expenditures coupled with inefficient administration of healthcare facilities around the nation has resulted in the US government spending 16 percent of its budget on healthcare related issues.

Most experts agree that unlike the developed counties in Europe and Canada the US healthcare system is fraught with poor administration, lack of management and subsequent fraudulent transactions. Such inefficiencies directly affect the related health costs that have to come on the expense of general public. That's not it! The total expenditures and the associated costs are expected to claim one fifth of the 2008 GDP budget. This is a whopping 20 percent increase from 2007. In numerical figures this increase represents 4.2 Trillion dollars from the tax payer's pocket.

Comparison with other developed nations

If the numbers doesn't look staggering than consider the fact that recent healthcare spending is four times the defense expenditures of the nation. Such an anomaly looks more daunting when we consider the equation that Uncle Sam is spending an entire arsenal on war on terror. Still, the healthcare costs far exceed any other public sector spending. For those who still debate that healthcare situation has been inflated by the media, they should realize that nearly 47 million Americans are still uninsured. What would happen if America had to cover their expenses, too? Compare this with other developed countries that provide free healthcare for their entire population. According to the Organization of Economic development the healthcare costs in similar economies like France, Germany, Canada and Switzerland is less than 10 percent of the GDP. Such figures clearly dictate that Congress has to drastic measures in order to get out of the recent healthcare crisis.

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