Second, our analysis reinforces the necessity for change in the
rules of health care financing if employee coverage is to expand.
Given the escalation of prices over the past twenty-five years, health
insurance appears to be unaffordable for large numbers of low- and
medium-wage workers. If, as seems likely, health spending continues
to rise more rapidly than income over the next ten years, then
more workers will lack insurance, not fewer. To avoid this, new
subsidies for lower-income workers will be required, likely combined
with required contributions from employers and workers.