Soaring health insurance costs are quietly preventing wages from rising higher, while workers also shoulder a larger share of premiums, economist says

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Open enrollment season for health care plans is about to begin, and many Americans may get sticker shock after seeing how much premiums will rise. But the rising cost of insurance is also quietly eroding wage gains, preventing workers from getting bigger raises than they would otherwise receive. Health insurance costs are a major issue in the midterm election. In addition to higher gas prices and utility bills, insurance has stoked voter anxiety about the rising cost of living. So despite consistently solid wage gains and a labor market that’s at full employment, consumer confidence gauges have tumbled as overall affordability deteriorates. Fresh economic data illustrate why workers aren’t feeling upbeat about more pay. In the third quarter, wages and salaries increased 3.1% from a year ago, according to the employment cost index released by the Bureau of Labor Statistics on Friday. But at the same time, employer health insurance contributions jumped 6.4%, matching the fastest pace…

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