How will employer health insurance affect wages and Social Security?

Chen, Anqi, Alicia Haydock Munnell, and Diana Horvath. “How will employer health insurance affect wages and Social Security?”. Issue in Brief 24-8, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, April 2024. http://hdl.handle.net/2345/bc-ir:109991.
PREVIEW Datastream
PDF

Abstract

The brief's key findings are: (1) When the employer cost for employer-sponsored health insurance (ESHI) rises, it slows wage growth and erodes Social Security's tax base. (2) Both these effects were evident from 1996-2005, but the situation stabilized during 2005-2019. (3) Why did the ESHI-to-compensation ratio stabilize? (a) During both periods, the major driver was the general rise in national health costs. (b) From 2005-2019, this impact was largely offset by less ESHI participation by lower earners and less demand for family plans. (4) Going forward, rising health costs could again push up the ESHI-to-compensation ratio, unless the factors that have been offsetting this growth continue.

Title
How will employer health insurance affect wages and Social Security?
Author
Chen, Anqi
Munnell, Alicia Haydock
Horvath, Diana
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
report
Date Issued
April 2024
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
24-8
Persistent Link
http://hdl.handle.net/2345/bc-ir:109991
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Social Security

My Bookmarks

Bookmarks: