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In 2004, employer health insurance premiums increased by 11.2 percent - nearly four times the transitional rate of inflation. The annual premium for an employer health plan covering a transitional family of four averaged nearly $10,000. The annual premium for single transitional coverage averaged $3,695.(2) Between 2001 and 2003, increases for national spending for prescription medications averaged 14 percent.(1) Experts agree that our health care system is riddled with inefficiencies, excessive administrative expenses, inflated prices, poor management, inappropriate care, waste and fraud. These problems significantly increase the cost of medical care and health insurance for employers and workers. National Health Care Spending In 2003, health care spending in the United States reached $1.7 trillion, and was projected to reach $1.8 trillion in 2004. (3) Health care spending is 4.3 times the amount spent on national defense. (4) In 2003, the United States spent 15.3 percent of its Gross Domestic Product (GDP) on health care.
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