File:Compensation - Gross and Net of Health Insurance Premiums.png

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English: Compensation - Gross and Net of Health Insurance Premiums


Employers think about the total compensation cost of employees and that calculation considers what they pay in health insurance premiums, in addition to salaries and wages. Since insurance premiums continue to grow rapidly, this cost is increasingly replacing other forms of compensation. The Council of Economic Advisors predicts that eventually wages will actually be reduced in real (inflation-adjusted) terms as the increase in insurance premiums will require reductions in non-insurance compensation. Health insurance premiums are thus a cause of salary and wage growth stagnation for much of the population in the U.S.
Source White House CEA Report June 2009
Author White House Council of Economic Advisors


This image is a work of an employee of the Executive Office of the President of the United States, taken or made as part of that person's official duties. As a work of the U.S. federal government, the image is in the public domain.

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