The Economic Perspective: “How Workers Pay for Higher Health Care Costs”

I’m Mary Walden with economist MW welcoming you to the economic perspective. Today’s program
asks how workers pay for higher health care costs. Mike, about half of us receive health care insurance coverage through our employers. As health insurance costs continue to rise, do companies share those rising costs with their workers?
a. In general, they do
b. The health insurance is considered a workplace benefit
c. But health insurance costs have been rising faster than other costs and wages
d. A new study found that companies effectively pass on those higher costs to their employees through
a couple of ways
e. One is to increase deductibles and co-pays
f. A second is simply to reduce the size of pay raises
g. Can have the effect of reducing hourly pay by 50 cents for every $1 increase in health insurance
h. Nothing is free!
i. I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the
Department of Agricultural and Resource Economics.