Press Release


Embargoed Until Contact

December 06, 2010
12:01 AM PST

Sue Ducat
Director of Communications
(301) 841-9962
sducat@projecthope.org

   

From Health Affairs

 

How Did The Recession Impact Health Insurance Coverage?

 

Bethesda, MD -- Between 2007 and 2009, with increasing unemployment and declining incomes, the number of uninsured nonelderly Americans increased from forty-five million to fifty million. This finding, described in an article being released as a Web First today by Health Affairs, is part of the Urban Institute's study that examined changes in Americans' insurance coverage during the past decade. The Urban Institute study focused on the relationship between the national economy and having insurance coverage, specifically the growth in the number of uninsured under age sixty-five.

 

The 2007-09 Recession And Health Insurance Coverage
By John Holahan
http://content.healthaffairs.org/cgi/content/abstract/hlthaff.2010.1003

 

Holahan is director of the Urban Institute Health Policy Center, in Washington, D.C. This study was prepared in partnership with the Kaiser Family Foundation's Commission on Medicaid and the Uninsured.

 

The Health Affairs paper examines both the changes in income and coverage over the entire decade, with a closer examination of the economic changes from 2007 to 2009. It uses several years of data from the Census Bureau's Current Population Survey (CPS) to analyze trends in coverage. Looking at the 2007-09 period, here are a few of the key findings:

 

- The number of nonelderly Americans insured through employers declined from 164.5 million to 156.2 million; much of this was because of job loss and movement from full-time to part-time work or unemployment.

 

- For adults, only some of this loss in insurance was offset by added public coverage; the number of uninsured adults increased by 5.6 million.

 

- The proportion of children covered through employer-sponsored coverage also declined, but this change was offset by increases in Medicaid and CHIP coverage. As a result, the number of uninsured children actually fell.

 

- More than 60 percent of the newly uninsured were white Americans. Only a very small share were not citizens.

 

- The largest percentage increase in the uninsured occurred in the Midwest.

 

The author concludes that the provisions to expand coverage under the Affordable Care Act will address many of these issues, and largely end the link between employment loss and insurance coverage. This will not occur until 2014, when many of the act's provisions take effect. Until then, said Holahan, "[I]t is likely that employer-sponsored insurance will continue to decline because premiums will almost certainly grow faster than wages and salaries and the number of uninsured people is likely to increase."

 
 
About Health Affairs
 

Health Affairs, published by Project HOPE, is the leading journal of health policy. The peer-reviewed journal appears each month in print, with additional Web First papers published weekly at www.healthaffairs.org. You can also find the journal on Facebook and Twitter and download Narrative Matters on iTunes. Address inquiries to Sue Ducat at (301) 841-9962 or sducat@projecthope.org