Increasing health insurance premiums since 1988 contributed to nearly $9,000 in annual lost earnings in 2019 and $125 000 in cumulative median lost earnings over the 32-year period. In addition:

Racial and ethnic earning disparities associated with health insurance premium growth have increased over time.
The relative value of an employer-sponsored family plan depends partly on household size. Many plans have a set rate for families regardless of household size, meaning that larger households may receive a relatively better value on their premiums than smaller households that are paying similar costs.
The loss of $9,000 in 2019 wages because of premium increases since 1989 has real consequences for families, especially those with economic insecurities. Increasing premium costs are particularly problematic for lower-paid workers, which could place their families at greater risk of economic instability.
This study builds on existing literature showing that increasing premium costs are associated with wage stagnation. Faced with excessive premium growth, some employers are responding by pivoting to greater employee cost sharing through high-deductible plans, reducing plan generosity or shifting employees to part-time work.
Few employer-sponsored plans vary health care premium costs by the wage level of the employee, making increasing premiums more burdensome for lower-wage workers.
Finding that lower-wage workers contribute more to premiums as a percentage of their compensation aligns with evidence that, across the entire U.S. health care system, the burden financial burden is greater for lower-income than higher-income households.

Instant Insights /

Study links rising health care costs and income disparities

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