More recession woes

The percentage of the nonelderly (under age 65) without employment-based health insurance coverage has grown during the recession, according to a study by the nonpartisan Employee Benefit Research Institute (EBRI).

The study also shows that for those who still have employment-based health insurance, deductibles and co-payments for office visits also have increased.

“The main reason for the observed drop in the percentage of the population with employment-based coverage is related to the fact that when there are fewer people working, there are fewer people with access to employment-based coverage," Paul Fronstin, director of the EBRI Health Research and Education program and author of the study, noted in a statement.

According to Fronstin’s report, the current recession started December 2007, and has not been officially declared over, although the economy experienced real growth in the second half of 2009. However, unemployment has continued to rise, reaching 10.1% in October 2009 and leveling off in the high-9% range.

STUDY FINDINGS
• The percentage of nonelderly (under age 65) with employment-based coverage was 61.3% in May 2007, and by July 2009 it was down to 58.2%.

• The uninsured rate was 12.3% in May 2007, and by July 2009 it was up to 16.4%.

• Between December 2007 and May 2008, the percentage of workers with coverage in their own name (the policyholder) fell from 60.4% to 56.8%. From May 2008 to July the percentage of workers with employment-based coverage in their own name continued to decline, falling to 55.9%.

• Deductibles, copayments for office visits, and prescription drug copayments have been increasing in recent years. Among workers with employee-only coverage in a preferred provider organization (PPO), the percentage with a deductible of at least $500 increased from 14% in 2000 to 52% in 2009. It was 48% in 2008 and 36% in 2007.

• Younger workers were more likely to lose coverage than older workers. Hispanic workers were more likely to lose coverage than whites or blacks. Part-time workers were more likely than full-time workers to have lost employment-based coverage.

• In 2008, 160.6 million individuals under age 65, or 61.1% of that population, were covered by employment-based health benefits. 15% were covered by Medicaid or the State Children’s Health Insurance Program (SCHIP), 6.3% purchased coverage directly from an insurer, and about 3% were covered by Medicare or Tricare/CHAMPVA.