Decades of escalating health insurance expenses have significantly eroded the earnings of American workers, with a pronounced impact on lower-paid employees and people of color, a new study reveals. The research, published in JAMA Network Open, highlights the hidden costs of healthcare that contribute to stagnant wage growth, a disproportionate insurance premium burden, and widening income inequality.
Ezekiel Emanuel, a study author and vice provost for global initiatives at the University of Pennsylvania, emphasizes that these financial pressures have not only stripped Americans of substantial income but have also intensified racial disparities. The Healthcare Transformation Institute at the University of Pennsylvania, where Emanuel serves as co-director, has been instrumental in bringing these issues to light.
The study’s findings underscore the challenges faced by lower-income workers, who are often caught in a cycle of financial insecurity as insurance costs rise while wages remain suppressed. This situation is particularly dire for workers of color, who experience even less wage growth and a heavier insurance premium burden compared to their white counterparts.
As healthcare costs continue to climb, the study calls attention to the need for systemic changes to address the inequities and financial strains that disproportionately affect marginalized groups within the American workforce.
See “Rising Health Insurance Costs Have ‘Robbed’ American Workers A new study shows that insurance premiums are holding back wage growth, especially for people of color” on the The Good Men Project website (February 5, 2024 )
