Healthcare costs pinch employers

Los Angeles Times, May 7, 2008
On average, U.S. manufacturers who provide health insurance spend more than twice as much as their foreign competitors, according to an analysis. American automakers say employee health coverage adds $1,500 to the price of each car, and U.S. manufacturers have blamed rising healthcare costs for dropping health benefits or shifting jobs overseas. But economists have pooh-poohed the idea that U.S. businesses are hurt by their comparatively high healthcare costs, and suggested that companies pass those costs onto workers by lowering wages or onto consumers by raising prices.

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