Between 1987 and 2000, private business spending on health services and supplies increased at an average annual rate of 8%, according to the Employee Benefits Research Institute (EBRI).   In 1987, only 69% of total spending was on health insurance premiums.

State Slate

In 2000, state and local governments, as employers, spent a total of $64.2 billion on health services and supplies for their employees, up from $19.5 billion in 1987. Between 1987 and 2000, state and local governments’ spending on health services and supplies for their employees increased at an average annual rate of 9.6%.

In 2000, 89% of state and local government spending, or $56.9 billion, was contributions to private health insurance premiums, according to EBRI.

Private-sector employers’ contributions to private health insurance premiums represented 75.6% of total spending (both employer and employee contributions) on private health insurance premiums, down slightly from 78.9% in 1987, according to EBRI.  

On the other hand, state and local governments’ contributions to private health insurance premiums were 81% of total contributions (both employer and employee contributions) to private health insurance premiums, down slightly from 82.5% in 1987.