MA Employer-Sponsored Healthcare Stable Despite Natl. Decline
Saturday, April 20, 2013
Overall, the report found that the percentage of U.S. nonelderly population with employer-sponsored health insurance declined from 69.7 percent in 1999/2000 to 59.5 percent in 2010/2011.
Forty-seven states and the District of Columbia saw significant declines in coverage
during this time period.
The report gathered state-level data figures from the Annual Social and Economic Supplement of the Current Population Survey, as well as the Medial Expenditure Panel Survey – Insurance Component.
The Worst Offenders
The largest decline in coverage occurred in Michigan, which saw a 15.2 percentage point drop.
Nebraska, on the other hand, saw the smallest statistically significant decline in coverage, dropping by 4.3 percentage points.
The share of the nonelderly population with ESI coverage ranged from a high of 73.8 percent in New Hampshire to a low of 48.0 percent in New Mexico. While Massachusetts’ neighbor, New Hampshire took the first place for percentage of coverage, the Bay State was next in line, with 72.9 percent of the population receiving coverage.
When divided between nonelderly and young adults, Mass. was the second highest again, but came behind Utah.
The report states that one cause for the rapid decline is the premium cost for employer-sponsored insurance.
Over the course of their sample time, the group’s report found that “the average total annual premium for single coverage more than doubled from 1999/2000 to 2010/2011, increasing from $2,490 to $5,081. The average total premium for family coverage increased even more dramatically, jumping 125 percent, from $6,415 to $14,447.”
As these figures soared, the average employee share of the cost remained relatively constant for both single and family coverage between the same time period, the study found.
“The dramatic jump in total premium cost translated into a significant increase in the dollar amount of the average employee contribution to premium—from $435 to $1,056 for single coverage and from $1,526 to $3,842 for family coverage.”
Still, the report says that that jump can’t account for all of the state-by-state, individual variations. Employee characteristics, population demographics, and impacts of the Affordable Care Act, they said, are all possible causes.
Why MA Stabilized
The report found that employer-sponsored coverage “eroded substantially” during their sample period, but that wasn’t the case for three states, including the Commonwealth.
Alaska, Massachusetts, and North Dakota had statistically stable rates of coverage, while all others saw at least some decrease.
One factor that the study linked to was income, saying, “The story of ESI (Employer Sponsored Insurance) coverage is one of income as well, since the likelihood of having ESI coverage increases as a person’s income increases.”
Massachusetts was found to rank very highly in terms of how many employers offered coverage, and how many workers are employed by establishments that offer coverage. The state did not rank well, however, in terms of the proportion of workers eligible for coverage at offering establishments. Massachusetts was also the second lowest state when ranked by the percent of coverage-eligible employees enrolled at offering establishments.
Good, But No Increases
While it’s a good sign that Massachusetts coverage stabilized, the study reveals that no states saw an increase in coverage from employers.
In fact, over time the time period from 1999/2000 to 2010/2011, Massachusetts was one of three states that saw significant declines in the percentage of small firm workers eligible for coverage.
Mass. also scored a costly premium charge – with the fifth highest cost for premiums for single coverage, and the third highest for family coverage. The costs were an average of $5,618 and $15,780 respectably.
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