Maybe it's just behavioral finance, the employees are swayed by dollars now, rather than in the future. And the investment risk is shifted to the employee, who probably doesn't think of that, or know how to quantify it if he does. So the company makes a better deal by arbitraging the
"risk perception differential." Retirement health care is a really important cost to drop. With long life expectancies and therefore long retirements, the inflationary tail risk for health care is now shifted from the companies to the taxpayers (Medicare).
Maybe it's just behavioral finance, the employees are swayed by dollars now, rather than in the future. And the investment risk is shifted to the employee, who probably doesn't think of that, or know how to quantify it if he does. So the company makes a better deal by arbitraging the
"risk perception differential." Retirement health care is a really important cost to drop. With long life expectancies and therefore long retirements, the inflationary tail risk for health care is now shifted from the companies to the taxpayers (Medicare).