New EBRI Research: Job-Based Health Insurance Continues Decline; Trend Results in Rising Uninsured Population

11/24/2003

From: Paul Fronstin, 202-775-6352; e-mail: fronstin@ebri.org; or Jim Jaffe, 202-775-6353; e-mail: jaffe@ebri.org, both of EBRI

WASHINGTON, Nov. 24 -- The percentage of Americans covered by job-based health insurance declined to 61.3 percent in 2002 -- down from 63.6 percent in 2000 -- according to new research from the Employee Benefit Research Institute (EBRI). This decline largely explains why the number of insured Americans grew by 2.4 million in 2002.

The November issue of EBRI Notes reports that 175.3 million Americans were covered by employment-based insurance in 2002 while 73.6 million Americans were insured by a public program. Medicare, which covers nearly all older Americans and Medicaid, the state-run programs for the medically indigent, each covered more than 33 million beneficiaries in 2002. The pattern where those who worked for the largest employers were most likely to have health insurance continued in 2002.

The percentage of the American population covered by such public programs increased from 10.6 percent in 2000 to 11.6 percent in 2002, but this trend was overwhelmed by the decline in employment-linked coverage. Recently many states have tried to contain spending on such programs because of budget pressures.

"Economically difficult times translate into an increase in the uninsured population," said EBRI CEO and President Dallas Salisbury, "continuing cost pressures will make it difficult to significantly reduce this group."