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It’s a slow news days, so everyone is highlighting the latest Kaiser report on healthcare costs. Guess what? They’re up!

I don’t have a ton to say on the fact that healthcare costs are increasing, but it’s worth pointing out what this means for household incomes. In the last year, for example, the Census Bureau reports that median household incomes dropped from $49,777 to $49,445. That’s a decrease of 0.7%.

But households also got compensation in the form of healthcare insurance. According to the Kaiser report, the employer share of healthcare premiums increased from $9,773 to $10,994. So let’s add this up:

  • 2010: $49,777 + $9,773 = $59,550
  • 2011: $49,445 + $10,994 = $60,439

Suddenly, instead of a decrease, we have an increase of 1.5%. Adjusted for inflation, this is still a net loss, but it’s a smaller one: about -1.2% instead of -3.4%. (All numbers are a bit rough since the sampling periods aren’t identical. But they’re probably accurate within a tenth of a point or two.)

Obviously the Great Recession is still taking its toll on household incomes. But so is healthcare. Household cash incomes have dropped considerably over the past decade, and that’s a sign of something seriously wrong with the economy. But it’s also a sign that instead of cash, we’re increasingly taking our compensation in the form of ever more healthcare. That’s probably a bad deal for most of us.

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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

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