Huge Percentage of Alaskans' Paychecks Go Toward Health Care Costs

We all know that health care is expensive but just how expensive may surprise you.

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By Lauren Maxwell
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We all know that health care is expensive but just how expensive may surprise you.

A new report from the University of Alaska’s Institute for Economic Research shows health care spending in the state reached $7.5 billion last year.

The report says a large percentage of Alaskans’ paychecks are going to health care costs. That’s something Jan Jones knows all too well. Jones has a job but her paycheck goes for one thing only.

“My entire paycheck goes to pay for my medical insurance for my husband and I,” says Jones. “And on top of that, our deductible is $10,000. How can you set aside $10,000 to meet that deductible when you are paying your entire paycheck, one half of the family’s income, to medical insurance? You can’t.”

Ironically, Jones works as a credit counselor for people considering bankruptcy.

She says unpaid medical bills are always at the top of the list.

“It’s just astronomical, medical bills plus the fact that most people can not afford the medical insurance these days,” says Jones. “So it’s a combination, a double whammy, they hope they don’t get sick and when they do they can’t afford it.”

There are many reasons why health care spending is going up and one of them is simply that we are getting older—an aging population needs more medical care. But there are other reasons as well. The increasing use of specialists and expensive technology, medical price inflation and changes in insurance coverage all contribute to rising costs.

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jjj said on Tuesday, Aug 23 at 4:16 AM

yea!!!! keep voting dem or rep and think things will change! You are all SHEEP!!!!!! Wake up Sheep! bush? obama? ITS YOUR FAULT, YOU VOTED THEM IN!!!! The U.S. goverment are TRAITORS!!!! and the people are cowards.

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legendpiper said on Friday, Aug 19 at 6:49 AM

Blame everyone but yourselves ... you deserve each other

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Chuck said on Thursday, Aug 18 at 5:38 PM

The $7.5 billion figure doesn't even take into account the many jobs (like at my office) whose pay is lower because they offer health benefits. Lower-wage jobs that offer benefits are more coveted than higher-wage jobs with no insurance, a fact that's not accounted for here.

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gee money said on Thursday, Aug 18 at 12:31 PM

and people are against some kind of health care reform, just saying!!!

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Barbara said on Thursday, Aug 18 at 10:32 AM

Gunny G, it's obvious to me that you are a republican who wants to blame the Democrats for everything! Well sorry to inform you, the enture state of economical crisis is BUSH Administrations fault!

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bob said on Thursday, Aug 18 at 10:21 AM

Seems like the health care reform is working its magic on the cost of health care in America. Thanks goodness for our government helping us poor people out. Check out the politicians health care, they don't have to pay for squat and guess who foots that bill, we do of course.

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Gunny G said on Thursday, Aug 18 at 10:18 AM

You can thank the Tort Lawyers like Democrat John Edwards for this. BTW, oddly enough, LAWYERS make up 100% of the Democrat party. Keep voting for em folks and you'll be bankrupt sooner rather than later.

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