Friday, January 8, 2010

Premium/wage tradeoff

Austin Frakt has a nice post with links to peer review studies supporting the notion that rising health insurance premiums lead to lower wages, and that conversely, slowing premium growth will increase wages. This is a major policy argument for the tax on high cost insurance. I am (still) convinced by this. Perhaps in the short run, savings from lower premiums won't be passed on in wages, but in longer run they should be.


  1. FYI, it's Austin Frakt (not Frakht). I know personally that he appreciates the link and takes no offense to the typo (happens all the time).

  2. sorry for corrected. His blog is good stuff.