Wages and Benefits

For the past few years, some economists have claims that increases in income inequality are due to increased cost of employee benefits such as health insurance. ¬†For instance, let’s say that health insurance cost $10,000 per worker. ¬†Workers with a wage of $20,000 have total compensation of $30,000 including benefits, and workers with wages of…

Risk Equalization and deductibles

In this blog, I have written about the Swiss (part one, part two) and Dutch healthcare system extensively. Both systems have a “regulated competition” where insurance is mandatory and insurance companies are mandated to provide a specific insurance benefit package. In the Swiss system, 85% of medical expenditures are financed by insurance premiums and 15%…