Middle-class families are paying more in insurance premiums and deductibles

Middle-class families are paying more in insurance deductibles as well as premiums — almost 12% of the income for a household earning $64,000 last year went toward these costs. Here’s more from a new report: 

• Overall trends: Last year, premiums and deductibles in 42 states were 10% or more of median family incomes. A decade ago, that was the case in only seven states. 
• Income growth: Premium contributions grew by more than 4% between 2008-2018. But the median household income fell during the 2008 recession before eventually growing by 3.4%. 
• “Underinsured”: The report states that having deductibles that are 5% or higher of income leaves people at risk of being underinsured due to high out-of-pocket costs. About 5% of people were considered underinsured in 2018 compared to fewer than 3% in 2008.