Tuesday, April 24, 2012

Workers, not firms, pay for healthcare - UPI.com

U.S. employers don't pay for health insurance, workers do; the employer pays for health insurance from money allocated for payroll, researchers say. Jonathan Kolstad, assistant professor at The Wharton School of the University of Pennsylvania, and Amanda Kowalski, an Okun-Model Fellow in Economic Studies, said when making hiring decisions, a company focuses on the total amount it spends on compensation, not the breakdown between salary and other benefits. .. Today, when offering jobs to potential employees, employers reduce salary to account for the contributions they must make to health insurance premiums, the researchers said. Potential employees then have to decide whether they are willing to work for lower wages and have health insurance, the researchers say.


Workers, not firms, pay for healthcare - UPI.com

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