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Employer Insurance Premium Growth – Still Have a Problem

Upward pressure on US consumer prices is stemming from two elements. Rents and medical services. Due to the differences in the composition of the basket of goods and services that are used, the core personal consumption deflator, which the Fed targets, typically lags behind core CPI\

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Upward pressure on US consumer prices is stemming from two elements. Rents and medical services. Due to the differences in the composition of the basket of goods and services that are used, the core personal consumption deflator, which the Fed targets, typically lags behind core CPI.

At is time of year; the concern tends to be on health care costs and premiums. Many US employees are given “open enrollment” when they can change their health care benefits.

This Great Graphic comes from Kaiser Family Foundation’s Employer Health Benefit Survey. It shows three five-year periods. The amber bar is the cumulative increase in for employer-provided health care premium. The dark blue bar is the cumulative increase in inflation, while the lighter blue bar is the cumulative growth in employee earnings.

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