Tag: Employer Contributions
The rising cost of employer contributions to employer-sponsored health insurance (ESHI) can slow wage growth and erode the Social Security wage base. Both these effects were evident in the decades before 2005, as ESHI increased as a share of compensation. Fortunately, the ratio of ESHI contributions to compensation plateaued after 2005, stabilizing wages and halting…
Good news for wages and Social Security tax base, but will costs stay flat? Health care costs are a large and growing share of the nation’s GDP. One way those costs feed into the general economy is through employer contributions to employer-sponsored health insurance (ESHI). Economists generally assume that the costs of employer benefits –…
