Axios is reporting that health care costs for workers is rising while overall costs of employer-based health benefits is growing modestly from year to year.
This is slowly eating up all of the average workers wage increases, and then some, as reported by the Kaiser Family Foundation’s 2018 Employer Health Benefits Survey.
The survey covers the last ten years, from 2008 to 2018. Most of where the employees are paying for health care comes from deductibles, which has seen a +212% increase over that period, and is out of pocket. These costs, the survey said, is rising faster than inflation and wages.
Premiums for families have risen over this period +55%, while workers’ earnings have risen +26%, and inflation has risen +17%.
According to Kaiser, employees are paying an average of about $1,200 per year in premiums. That’s 65% more than what they paid in 2008, for single coverage plans that cover only the worker, no family members.
Besides the increase in deductibles, the number of employees who have a deductible has gone up, and the number of employees with above-average deductibles is up as well.
- More patients are more attuned to the high costs of care.
- The underlying cost of health care services is growing relatively slowly right now, compared to historical trends.
- But there’s a sense, at least among some liberal-leaning health care experts, that employers have just about maxed out their ability to shift more costs onto employees — meaning that once price increases start to pick up steam again, businesses and workers will both feel the pain quickly.
What does this mean?
As workers’ wages are stagnant, and health care costs are rising, shifting the cost of health care onto the backs of workers is not only counterproductive to lowering the cost of health care, it puts an undue burden on those who can least afford to shell out more of their hard earned income on health care, especially when they have a serious medical issue to deal with.
Single payer will relieve the worker from having to pay out of pocket when wages are stagnant, and when wages rise again. This will enable them to have more money to spend on things that otherwise would have been prohibitive before.
To do no less is to saddle the working class with perpetual debt and decreased economic power. Not a good way to run an economy.