While many proposals to expand employer-based health insurance coverage are being discussed at the state level, businesses are concerned that the rising cost of providing such coverage is challenging their ability to compete in a global economy.

This snapshot examines trends in employer-sponsored health insurance costs in the United States. It looks at the percentage of businesses offering coverage, the growth of insurance premiums relative to salaries and wages, and the proportion of payroll that is taken up by premium contributions.

Key findings include:

• While wages and salaries increased by 39% between 1996 and 2005, health insurance costs to employers rose 97%.
• At businesses that offered insurance, the share of total compensation paid as health insurance rose from 6% to 8% from 1996 to 2005. As health insurance costs increased, the share of compensation paid as wages fell.
• Premium contributions as a share of payroll were highest for unionized businesses, businesses with a high share of full-time workers, and low-wage businesses.

The complete snapshot is available under Document Downloads.