Employers' Health Insurance Cost Burden, 1996-2005

Published In: Monthly Labor Review, v. 131. no. 6, June 2008, p. 28-44

Posted on RAND.org on December 31, 2007

by Christine Eibner, M. Susan Marquis

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Data from the Employment Cost Index show that health insurance costs relative to payroll increased 34 percent between 1996 and 2005 and that the increase was largest for businesses paying low wages; simultaneously, data from the Employee Benefits Survey show that benefit packages became less generous, yet cost growth was not paralleled by a commensurate decrease in employer offers.

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