Rising Healthcare Costs: A Growing Burden for Missouri and Kansas Families
Families in Missouri and Kansas are facing a significant financial strain as healthcare costs continue to climb. A recent report from the Commonwealth Fund reveals that nearly 10% of household income is now dedicated to employer-sponsored health insurance premiums and deductibles in both states.
The Affordability Threshold
The Commonwealth Fund report found that in Missouri, these combined costs consumed 9.6% of a family’s income in 2024. Kansas families fared slightly worse, with 9.9% of their income going towards premiums and deductibles. Experts like Timothy McBride, a health economist at Washington University in St. Louis, suggest that the 10% mark is a critical threshold for affordability.
“We don’t have a real clear answer for that, but 10% (of household income) gets kicked around a lot,” McBride stated.
Beyond Premiums: The Impact of Deductibles
The financial burden extends beyond monthly premiums. High deductibles are forcing families to shoulder a substantial portion of healthcare expenses before their insurance coverage kicks in. In Missouri, single coverage deductibles represented 5.4% of the median household income, while in Kansas, that figure was 5.5%.
Linda Sheppard, a senior analyst at the Kansas Health Institute, emphasizes the implications of these high deductibles. “If you’re spending 5% of your annual household income on your health insurance deductible, I could see the argument being made that you’re underinsured…That is just a huge financial burden.”
A National Trend
Missouri and Kansas aren’t alone in this struggle. The report highlights that 19 states now have families paying 10% or more of their income towards healthcare costs. Across the country, healthcare spending reached $5.3 trillion in 2024, a 7.2% increase from the previous year, outpacing overall economic growth.
Factors Driving Up Costs
Several factors are contributing to this upward trend. A growing population with chronic diseases, increased pharmaceutical spending, and a lack of competition within the healthcare market are all playing a role. “Health care marketplaces and insurers that have less competition tend to have higher costs and premium growth,” McBride explained. “If you have dominant health systems that can charge prices without getting a lot of pushback, that’s not generally that good.”
The Employer’s Role and Cost Shifting
Employers are caught in the middle, attempting to manage rising costs while maintaining benefits for their employees. While larger companies may have more flexibility to absorb some of these costs, the trend indicates a continued shift of expenses onto employees. Sheppard predicts, “You’re going to see that number continue to edge up of what individuals and families are having to pay out of pocket for their health care. I don’t see that as changing, because the cost of care continues to rise over time.”
What Does This Mean for the Future?
The current trajectory suggests that healthcare affordability will remain a significant challenge for families in Missouri, Kansas, and across the nation. Without substantial changes to the healthcare system, the percentage of income dedicated to healthcare is likely to continue increasing, potentially leading to delayed or forgone care.
Frequently Asked Questions
What is considered affordable healthcare?
While there’s no universally agreed-upon definition, many experts suggest that healthcare costs exceeding 10% of household income are considered unaffordable.
Why are healthcare costs rising?
Factors include an aging population, increased chronic disease prevalence, rising pharmaceutical prices, and limited competition among healthcare providers.
What can individuals do to manage healthcare costs?
Consider exploring different insurance plans, utilizing preventative care services, and comparing prices for medical procedures.
Want to learn more about healthcare affordability? Read the full Commonwealth Fund report here.
