Rising Premiums Drive Decline in Health Insurance Coverage

by Robert Miller



According to a recently released Robert Wood Johnson Foundation study, rising premiums have driven a steady decline in employer-sponsored health insurance since 2000.

In 2011, the number of non-elderly Americans with employer-sponsored insurance stood at 159 million, a decline of 11.5 million from 2000 (69.7% in 1999/2000 vs. 59.5% in 2010/2011). According to the report, 47 states had a statistically significant decline in employer-sponsored coverage from 2000-2011, with 22 states experiencing declines of at least 10 percentage points.

Employers Offering Coverage, 2010/2011

Source:  State Health Access Data Assistance Center, 2013.  "State-Level Trends in Employer-
Sponsored Health Insurance."  SHADAC Report, Minneapolis MN, University of Minnesota.

Other key findings:

• While most states saw “significant declines” in employer provided coverage, the range was wide (e.g., New Hampshire with 73.8% coverage vs. New Mexico with 48% coverage).

• The largest decline occurred in Michigan with a 15.2% drop.

• As might be expected, higher income populations experienced less of a decline than lower income populations.

• Annual premiums for single coverage more than doubled while family coverage increased 125%.

For a full copy of this report, click HERE.