Throughout the primary season we have heard two things consistently from voters: they are worried about the economy and concerned about affording health care. Today, New America's own Len Nichols and Sarah Axeen analyzed one linkage between these two domestic priorities: the impact of rising health care costs on global competitiveness and U.S. jobs.

As the LA Times' Lisa Girion explains this morning in her report on their work, “Many economists have pooh-poohed the idea that U.S. businesses are hurt by their comparatively high healthcare costs. Instead, they have suggested that companies would pass those costs onto workers by lowering wages or onto consumers by raising prices.” Not likely, according to Nichols and Axeen, who argue that employers face various constraints and labor market realities that make it unlikely for them to be able to shift health care costs into wages in the short run, especially since health care costs have grown so rapidly and unpredictably for decades. Plus, it’s the 21st century and being able to compete globally means low prices. Manufacturers can’t just push the price of health care into goods because of stiff international competition. This is not good news for U.S. manufacturers who spend $2.38 per worker per hour for health benefits compared to their foreign trading partners who spend $0.96.As Jane Sarasohn-Kahn of HealthPopuli posted, “[this all] adds up to one big competitive disadvantage which ultimately results in lost jobs for Americans.”

But as you know, here at New America we are about solutions. So here are our thoughts: We need to make the health care system more citizen-based, rather than employer-based. This means we need to think about new insurance market rules that make private markets work for all Americans (not just the healthy and wealthy) and we need to make sure that lower income people have subsidies so insurance is affordable. Bottom line: we must reform our health system in a way that allows U.S. employers to thrive and Americans to keep their jobs.

Want to know more? Join us on Capitol Hill on Friday, where Senator Stabenow (D-MI), the WSJ’s Laurie McGinley, and representatives from the business, labor, and economic communities will discuss this important topic. See you there!