New EBRI Research: Health Coverage among Those Aged 55-64 Stable Despite Insurance Decline for Younger Groups

3/17/2004

From: Paul Fronstin, 202-775-6352 or fronstin@ebri.org, or Jim Jaffe, 202-775-6353 or jaffe@ebri.org, both of the Employee Benefit Research Institute

WASHINGTON, March 17 -- Despite employer cutbacks in health insurance for retirees, Americans between 55 and 64 were more likely than other nonelderly adults to be insured in 2002. While coverage for all other adult groups declined between 1994 and 2002, it remained stable for the near elderly. In 1994, 12.8 percent of them were uninsured. The comparable figure in 2002 was 12.9 percent. For those over 64, most of whom are eligible for Medicare coverage, the uninsured segment is significantly smaller, according to the Employee Benefit Research Institute (EBRI).

The March issue of EBRI Notes reports the percentage of adults lacking insurance rose significantly within other groups, including increases exceeding 21 percent for those between 21 and 35.

Within the 55 to 64 age group, 50.7 percent were insured by their employer (down from 51.6 percent the prior year, but up from 49 percent in 1994). The segment individually purchasing coverage in the market declined from 11.4 percent in 1994 to 8.4 percent in 2002 and those in public plans declined slightly, from 18.7 percent to 17.8 percent.

"These figures suggest that prospective reductions in employer- provided retiree coverage aren't being felt yet," said EBRI CEO and President Dallas Salisbury, "but the coverage statistics could deteriorate as these changes begin to bite."