The chronic problem of declining health coverage

http://www.epinet.org/content.cfm/issuebrief202

Employer-provided health insurance falls for third consecutive year
By Elise Gould

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The costs to working families of the recession and jobless recovery have been amply documented in terms of jobs, wages, and incomes (Mishel et al. 2004). Yet the persistently weak labor market in tandem with sharply increasing health costs have led to a related problem for working families: the loss of employer-provided health coverage. This report examines the erosion of employer-based coverage since 2000, with an emphasis on the characteristics—gender, race, education, and wage and income levels—of those who have lost coverage.

Although unemployment has increased and the labor market has shrunk over this period, the loss of jobs cannot explain all of the decline in employer health care coverage. Jobholders also experienced a drop in coverage from 58.9% to 56.4%, a change of 2.5 percentage points. This decline may be the result of a couple of trends: the slack in the labor market that has weakened workers' bargaining power or steep increases in health care costs that are being passed to employers and employees in the form of higher premiums and lower take-up rates.

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Children experienced the sharpest decline, with a net 2.4 million fewer children covered by employer-provided health insurance in 2003 than in 2000. The percentage of children under age 18 with employer coverage fell from 65.6% in 2000 to 61.2% in 2003. Fortunately, existing government insurance (i.e., Medicaid and State Children's Health Insurance Programs) increased coverage to children by 5.5 percentage points, enough to offset the sharp decline in employer coverage for this group.1

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As shown in Table 1, whites are more likely to be insured, and they experienced less of a decline in coverage than blacks. In 2003, those with a college degree were 34% more likely to have employer-provided coverage than those with only a high school degree. In addition, those with only a high school degree experienced a greater decline in coverage compared to those with a college degree (declines of 4.3 vs. 3.0 percentage points).

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I really wonder. Health insurance has been a mess for decades. Clinton was crucified for trying to fix it. His plan was demonized by the Republicans because it was such a good plan that had it passed, they would have been marginalized for years. So a massive propaganda campaign was launched and the people fell for it.

Ten years later we are much worse off. We pay much more for less coverage. Many do not have any insurance at all. Yet there is little grass roots clamor for change. Sure people complain but that is as far as it goes. Again we see the fear mongering ramping up against the marginal changes that Kerry proposes. People fall for it because as much as they complain, there is fear of change.

Those of us who need help the most are unlikely to get it. Most will pay more and more, a continuing drag on our personal finances and the freedom to pursue any job or entrepreneurial venture that we see fit.