While paychecks may be getting bigger, workers aren't taking home as much as they seem. New research finds US families with employer health insurance lost $125,340 on average from 1988 to 2019 as premiums surged. Healthcare now eats up over 15% of compensation, versus under 8% before.
This inflation has disproportionately harmed minority and lower-wage employees, for whom premium hikes pack an outsized punch. And skimping on benefits to save money can exacerbate inequities.
As costs stay high, HR must rethink health offerings. Some firms tie premiums to income, easing the burden for lower earners. Others target cost drivers like chronic conditions. But with healthcare gobbling up hard-won raises, companies must act to ensure benefits buoy rather than erode purchasing power.
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