Skip to content Skip to navigation

You are here: Home » Content » 20.1 Projected Growth in Health-Related Benefits
Content affiliated with: American Enterprise Institute

Navigation

Lenses

What is a lens?

Definition of a lens

Lenses

A lens is a custom view of the content in the repository. You can think of it as a fancy kind of list that will let you see content through the eyes of organizations and people you trust.

What is in a lens?

Lens makers point to materials (modules and collections), creating a guide that includes their own comments and descriptive tags about the content.

Who can create a lens?

Any individual member, a community, or a respected organization.

What are tags? tag icon

Tags are descriptors added by lens makers to help label content, attaching a vocabulary that is meaningful in the context of the lens.

This content is ...

Affiliated with (What does "Affiliated with" mean?)

This content is either by members of the organizations listed or about topics related to the organizations listed. Click each link to see a list of all content affiliated with the organization.
  • AEI

    This module is included in aLens by: American Enterprise InstituteAs a part of collection: "American Health Economy Illustrated"

    Click the "AEI" link to see all content affiliated with them.

Recently Viewed

This feature requires Javascript to be enabled.
Download
×

Download module as:

  • PDF
  • EPUB (what's this?)

    What is an EPUB file?

    EPUB is an electronic book format that can be read on a variety of mobile devices.

    Downloading to a reading device

    For detailed instructions on how to download this content's EPUB to your specific device, click the "(what's this?)" link.

  • More downloads ...
Reuse / Edit
×

Module:

Add to a lens
×

Add module to:

Add to Favorites
×

Add module to:

 

20.1 Projected Growth in Health-Related Benefits

Module by: Christopher Conover. E-mail the author

Summary: Over the next 75 years, health benefits as a share of worker compensation could more than quadruple. Despite this, real cash wages per worker will be 7.5 times as much as the amount in 2008.

If current trends continue, the ratio of health-related fringe benefits to worker wages will more than quadruple. Admittedly, forecasting over a 75-year period is challenging. However, estimates of what wages will be through 2083 use the identical assumptions about growth in real (inflation-adjusted) wages per worker that are embedded in the most recent projections from Social Security trustees. Assuming that changes in these shares mirror what has happened during the past 10 years, the share of total compensation for health benefits and non-health fringe benefits can be projected,.

Using these simple assumptions, the ratio of health-related supplements per dollar of wages would grow over 75 years from 6.4 cents in 2008 to 26.3 cents (figure 20.1). Even after taking into account the growth in non-health fringe benefits as a share of compensation—projected in a parallel fashion—the amount of real cash wages will grow considerably, relative to 2008. That is, in terms of constant purchasing power, workers in 75 years will have nearly eight times as much non-health compensation as they received in 2008.

At historical growth rates, the amount of health-related benefits per dollar of wages and salaries would quadruple over the next 75 years.

Succinctly, even though employers will have to devote a growing share of compensation to health care, these costs currently are not growing so rapidly that they will entirely displace the parallel (though slower) growth in real wages. Such a time might come, but not in the foreseeable future.

References

  1. Department of Commerce. Bureau of Economic Analysis.

Content actions

Download module as:

PDF | EPUB (?)

What is an EPUB file?

EPUB is an electronic book format that can be read on a variety of mobile devices.

Downloading to a reading device

For detailed instructions on how to download this content's EPUB to your specific device, click the "(?)" link.

| More downloads ...

Add module to:

My Favorites (?)

'My Favorites' is a special kind of lens which you can use to bookmark modules and collections. 'My Favorites' can only be seen by you, and collections saved in 'My Favorites' can remember the last module you were on. You need an account to use 'My Favorites'.

| A lens I own (?)

Definition of a lens

Lenses

A lens is a custom view of the content in the repository. You can think of it as a fancy kind of list that will let you see content through the eyes of organizations and people you trust.

What is in a lens?

Lens makers point to materials (modules and collections), creating a guide that includes their own comments and descriptive tags about the content.

Who can create a lens?

Any individual member, a community, or a respected organization.

What are tags? tag icon

Tags are descriptors added by lens makers to help label content, attaching a vocabulary that is meaningful in the context of the lens.

Reuse / Edit:

Reuse or edit module (?)

Check out and edit

If you have permission to edit this content, using the "Reuse / Edit" action will allow you to check the content out into your Personal Workspace or a shared Workgroup and then make your edits.

Derive a copy

If you don't have permission to edit the content, you can still use "Reuse / Edit" to adapt the content by creating a derived copy of it and then editing and publishing the copy.

  • © 2012 Regents of the University of Minnesota. All rights reserved.
  • The University of Minnesota is an equal opportunity educator and employer. Privacy
  • Last modified on Sep 24, 2013 3:21 pm -0500