US Employers Drop Health Cover as Costs Rise

US Employers Drop Health Cover as Costs Rise - For things...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
US Employers Drop Health Cover as Costs Rise . Next year, the amount of money American employers and workers sped on heath benefits will rise once again to twice the rate of inflation. Because of this, employers are dropping a lot of coverage for their employees. The total health benefits rose by 6.1% in 2007, which is around the same pace as last year. This rise cost employers $7,983 per employee a year. The cost has continually increased for the past 3 years, with a memorable spike at 15% in 2002. This increase is, on average, twice the rate of inflation. The rise in health cost is cutting into business profitability, wages, and material prices. Because of this, United States companies are being put at a disadvantage, globally.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: For things to improve, some economist saying that the costs of heath care has to rise along with wages and the price of inflation. A recent survey also found that smaller companies are dropping health care plans faster than bigger ones. Because of this health care coverage prevalence dropped from 63% to 61% in 2007, a significant decline from 66 percent 5 years ago. Luckily health care coverage is a major topic in the up coming presidential election, as spending on heath care is expected to reach $4,000 in 2015 or only 20 percent of the GDP (gross domestic product) according to most estimates. The same survey found that costs for health will rise 5.7 percent each year....
View Full Document

This note was uploaded on 05/11/2008 for the course ECON 102A taught by Professor Sorensen during the Spring '08 term at UC Riverside.

Ask a homework question - tutors are online