Rising Health Costs Cut Into Wages

[cal04]

Higher Fees Squeeze Employers, Workers
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/23/AR2008032301770.html?hpid=topnews
Recent history has not been kind to working-class Americans, who were down on the economy long before the word recession was uttered.

The main reason: spiraling health-care costs have been whacking away at their wages. Even though workers are producing more, inflation-adjusted median family income has dipped 2.6 percent -- or nearly $1,000 annually since 2000.

Employees and employers are getting squeezed by the price of health care. The struggle to control health costs is viewed as crucial to improving wages and living standards for working Americans. Employers are paying more for health care and other benefits, leaving less money for pay increases. Benefits now devour 30.2 percent of employers' compensation costs, with the remaining money going to wages, the Labor Department reported this month. That is up from 27.4 percent in 2000.

"The way health-care costs have soared is unbelievable," said Katherine Taylor, a vice president for Local 1199 of the Service Employees International Union. "There are people out here making decisions about whether to keep their lights on or buy a prescription."

Since 2001, premiums for family health coverage have increased 78 percent, according to a 2007 report by the Kaiser Family Foundation. Premiums averaged $12,106, of which workers paid $3,281, according to the report.

[Skittles]

1. WHY do health care costs rise so much?

people scream about the price of gas but WTF!!!!!!!!!

[physioex]

2. Good question...

I don't have the answer. But it seems that we are spending too money on the problem after it gets seriouss and none on prevention. We use ER rooms as primary care and it's the most expensive form of care. A great example would be Cuba that invests in low cost clinics on preventive care and as a near third world country they probably provide better health care than we get here.

[Skittles]

3. absolutely

it is a HUGE incentive for companies to ship jobs overseas, too :(

[GOPBasher]

4. I recommended this, because it's such an important issue to discuss. n/t