And what that means for wages. By way of Axios, we come across this figure:
Axios summarizes (boldface mine):
Employers consider a block of compensation for every employee. Health insurance, which is exempt from taxes, has eaten up a lot more of that block over time.
- In 1999, the average health insurance coverage for a family consumed 14% of the average household income, according to inflation-adjusted figures from the Census Bureau and the Kaiser Family Foundation.
- By 2017, family coverage absorbed more than double that amount, to about 31% of take-home pay.
- Health insurance has hovered consistently around 31% of household income since 2012, as companies shifted their employees to plans that had steady premiums but higher deductibles and out-of-pocket costs — a strategy that has largely backfired.
Keep in mind that deductibles and co-payments also are increasing. To put this in concrete terms, if your employer picks up part of your healthcare insurance costs, a family’s average insurance payment (again, not any additional costs) has risen, in real 2017 dollars, from $1543 in 1999 to $5714 in 2018. And insurance doesn’t cover what it used to, so, unless you’re really lucky, add at least $1,000 to that for deductibles, medicines, and so on. That’s a significant chunk of income–of course, it’s even worse if you’re paying the full amount (e.g., self-employed). Even knocking off fifteen percent wouldn’t be trivial, especially if you’re earning below the median income; at the same time, your employer also would save a similar amount.
Best system in the world…