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How Exorbitant Health Insurance Costs Hurt Families Today

October 17, 2012

I had a technical glitch with my blog site. I hope it’s all fixed now.

I just read the most amazing article on the effect of health insurance costs on family income 😉

These two brilliant researchers started with cost data from the managed care era — the last time healthcare inflation sort of matched general inflation — and projected what family incomes could be if family health insurance costs had inflated at the general inflation rate since 1996, and all of the savings were converted to family income.

Their answer: Annual family income would be $8,400 higher.

I continue to have trouble understanding why this trade-off is not better understood by American workers. Many think that benefits paid on their behalf come out of some mystery corporate account. They don’t seem to realize that the corporate revenue that gets sucked into the healthcare industry in the form of insurance premiums is money that could have been put into their paychecks.

I hope one day American workers realize this choice that’s rarely spoken of. They have improved their increased productivity over the last 15 years, but have no increased income to show for it. I hope they someday choose to fight the excesses of the healthcare industry and reclaim the fruits of their labors for themselves.

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