The Hidden Cost of Jobs without Health Care Benefits

Source: Ken Jacobs, Perspectives on Work, Summer 2006, Volume 10, no. 2

In the last half of the twentieth century American health care financing emerged as a dual system: private, employer-sponsored care for most people was supplemented by public care for the poor and elderly. Today, however, rising health insurance premiums, shifting industrial composition, increased use of temporary and part-time workers, and a weakened bargaining position of workers in the labor market are factors leading to a marked shift in the nature of health care coverage for American workers.

Declining job-based coverage affects not only health care access and quality for those who are not covered; it also creates hidden costs for employers providing coverage and for taxpayers. Even worse; companies that pare down health benefits or adopt changes that make coverage unaffordable for workers undermine the market position of competitors, forcing them to follow suit as well. These, too, are hidden costs of non benefited jobs. Lawmakers at all levels in the United States are concerned about these issues and are looking for innovative solutions.

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