New EBRI Research: Health Insurance Available to More Workers But Take-Up Rate Declined in 1993-2001 Period

5/9/2003

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

WASHINGTON, May 9 -- A new compendium of data about health benefits suggests that employers are increasingly likely to offer health insurance benefits, but workers are slightly less likely to take them. Between 1993 and 2001 the percentage of the work force offered such coverage rose from 73.8 percent to 77.4 percent, while the segment of eligible workers taking up the coverage declined from 85.2 percent to 82 percent. Nationally, the percentage of the total population uninsured declined in the middle of this period, but rose at the end.

These figures are contained in the Employee Benefit Research Institute's May 2003 Issue Brief, compiled by EBRI researchers Paul Fronstin, Rachel Christensen, and Ken McDonnell, which was designed as a data catalogue on major health benefit issues.

Other findings include: -- Between 1960 and 2001, the federal government's share of the national health bill nearly tripled from 10.8 percent to 31.9 percent. Direct out-of-pocket consumer payments, by contrast, declined from 48.7 percent to 14.4 percent. -- Coverage generally correlates with income. Among poorest families (reporting annual income of below $5,000), 40 percent lack coverage. When family income exceeds $50,000, only 8 percent are uninsured. -- Most states with the highest percentage of uninsured residents are along America's southern border. -- Young adults between 21 and 24 are most likely to be uninsured. Nearly a third of them (31 percent) lack coverage.

Old-style "fee for service" health insurance is disappearing. In 1990, it was the overwhelming favorite, covering 74 percent of the insured. A decade later, it covered only 9 percent. During that time the market share of health maintenance organizations more than doubled and preferred provider plans more than quadrupled.

"The percent of the population with health insurance is virtually unchanged," said EBRI President and CEO Dallas Salisbury. "But there have been major changes in the way coverage is provided. This trend will likely continue."