Who Pays for Increases in Health Insurance Premiums?

When I saw the article with the headline “Workers Bear Larger Share Of Health Premium Costs” I wondered if it was going to make the same faulty statements about who pays for what. It does:

Total premiums rose a modest 3 percent for family coverage and 5 percent for single. But Kaiser Family Foundation Chief Executive Officer Drew Altman says companies passed most of those increases on to workers instead of absorbing them, as they usually do.

Did you know that it is technically impossible for a corporation to simply absorb increases in health care premiums? If a company¬† does not pass the cost directly to the employees, as this article would seem to define “absorbing,” then there is less money available for pay and other benefits.The employees are still being charged for the increase in cost, but it is happening indirectly.

If the company passes the cost of premiums directly to its employees, then the employees might notice it more quickly. The bottom line is that employees always pay for an increase in premiums. The only question is whether that increase is hidden or obvious.