How Do Rising Healthcare Costs Affect Worker Compensation?

The researchers measured the extent to which increases in health insurance premiums are borne by workers in the form of lower wages relative to the extent to which they are borne by employers in the form of lower profits. They also examined whether there are significant differences in this relationship between small and large firms and between low and high income workers. Finally, they examined the extent to which any wage offsets vary by the expected health care costs across groups of workers with different characteristics, such as age, gender, health status, and family size. The objective of the study was to better understand where the burden of rising health care costs falls, so as to develop appropriate policy incentives.