Hank Gardner wrote this article for STAT, discussing recent research about the correlation between healthcare cost increases and slow wage growth, and how employers can carry out “their own do-it-yourself, market-based health care reform.”
Read the full original article from STAT.
Gardner notes that “this research spotlights one of the biggest but least discussed economic effects of runaway health care costs. As health care expenses drain more of employers’ compensation budgets, less money is available to put into people’s paychecks." But it's not impacting everyone equally - those making less than $30,000 per year are seeing the smallest increase in wages, well below the national average. "Flat wages widen economic inequality — one of the things fanning voter anger and frustration."
Choosing a partial self-insurance program can reduce or eliminate out-of-pocket costs for employees, which provides for greater stabilization in paychecks and allows them to spend less money each month in rising and/or unpredictable healthcare expenses. Learn more about the importance of healthcare benefits in employee recruitment (and retention) in our whitepaper, Using Employee Healthcare to Retain and Recruit Top Talent:
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