Public Policy Institute

The Effects of Rising Health Care Costs on Middle-Class Economic Security

Rising costs for health care services and health insurance premiums represent a growing burden for middle-class families across all age groups. The growth in health care spending is crowding out other important priorities such as saving for retirement and for children’s education. Furthermore, employers have responded to higher health care costs by scaling back wage increases and by increasing employees’ cost sharing.

If these trends continue, many people who had been middle-class throughout their working years risk not having sufficient financial resources to maintain a middle-class lifestyle during their retirement years. This report documents the impact of rising health care costs for middle-class workers and retirees.

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