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Thu Sep 26, 2013, 02:39 PM

 

Obamacare NOT what is contributing to drop in employer sponsored health insurance coverage

The Economic Policy Institute reveals the drop in employer-sponsored health insurance (ESI) for over a decade--something that has nothing to do with Obamacare. This is a critical point to cite when discussing this issue with conservaderps.

Most Americans, particularly those under age 65, rely on health insurance offered through the workplace. Thus, given these unemployment trends, it comes as no surprise that the share of Americans under age 65 covered by employer-sponsored health insurance (or ESI) eroded for the tenth year in a row in 2010, falling from 59.4 percent in 2009 to 58.6 percent. However, the situation started deteriorating long before the Great Recession: The share of Americans under age 65 covered by ESI eroded every year from 2000 to 2010, decreasing by a total of 10.6 percentage points. As many as 28 million more people under age 65 would have had ESI in 2010 if the coverage rate had remained at the 2000 level.

No demographic or socioeconomic group has been spared from the erosion of job-based insurance from 2000–10. Both genders and people of all ages, races, and education levels have suffered declines in employer-based coverage. Workers across the wage distribution, in small and large firms alike, and even those working full time and in white-collar jobs have also lost coverage.


http://www.epi.org/publication/bp337-employer-sponsored-health-insurance/

For overall reference, here is a link to a Kaiser Family Foundation table about who is covered by what types of insurance in the U.S. population. The breakdown is as follows by percentage


Employer 149.4 48.5%
Medicaid 50.6 16.4%
Uninsured 48.6 15.8%
Medicare 40 13.0%
Individual 15.4 5.0%
Other Public 3.8 1.2%
------------------------------------------
TOTAL 307.8 100.0%


Quickly, this means for over 81% of the population (with employer sponsored, Medicare, Medicaid, or other public insurance) there will be virtually no changes.

For those who are already in private insurance market and uninsured, it will be a mixed bag. Some will qualify for expanded Medicaid. Others will be able to obtain insurance for the first time in a long time and not be denied coverage or priced out of the market. Others who purposefully choose not to be insured will be compelled to, and some younger healthier people in private insurance market will have to pay more (in many cases because the cheap policies they have cover virtually nothing).

http://kff.org/other/state-indicator/total-population/

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Arrow 17 replies Author Time Post
Reply Obamacare NOT what is contributing to drop in employer sponsored health insurance coverage (Original post)
Pretzel_Warrior Sep 2013 OP
dkf Sep 2013 #1
Pretzel_Warrior Sep 2013 #2
dkf Sep 2013 #8
ProSense Sep 2013 #9
dkf Sep 2013 #13
ProSense Sep 2013 #14
Pretzel_Warrior Sep 2013 #17
Pretzel_Warrior Sep 2013 #10
Lint Head Sep 2013 #3
Pretzel_Warrior Sep 2013 #4
ProSense Sep 2013 #7
Pretzel_Warrior Sep 2013 #16
Ron Green Sep 2013 #5
Pretzel_Warrior Sep 2013 #6
madville Sep 2013 #11
Scuba Sep 2013 #12
Puzzledtraveller Sep 2013 #15

Response to Pretzel_Warrior (Original post)

Thu Sep 26, 2013, 02:52 PM

1. Considering that the percent of the population in full time jobs is dropping this should be expected

 

The degree to which full timers are dropped to 29 hours can be more specifically attributed to Obamacare though.

Also employers dropping coverage for part timers and spouses may be directly tied to the ACA.

I'm sure we will be able to tear apart the numbers and make the appropriate correlations.

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Response to dkf (Reply #1)

Thu Sep 26, 2013, 02:56 PM

2. there are earlier reports from 2007 with similar analysis showing drops in coverage

 

not just because of employment numbers but also because of companies for a variety of reasons dropping health coverage or reducing it. None of that had anything to do with ACA/Obamacare.

Why do you take a long standing trend that has been proven by data and still try to shoe horn in Obamacare as the cause?

From 2007:

The decline in health insurance coverage continued unabated in 2006, driven primarily by the continued erosion in employer-provided health insurance. In 2006, 47 million Americans were uninsured, up nearly 8.6 million since 2000. The rate of those without insurance has grown 2.1 percentage points during this period, from 13.7% in 2000 to 15.8% in 2006.

Employment-based coverage is still the most prominent form of health insurance in the United States at 59.7% of all Americans; however, the rate of this coverage has fallen in every year since 2000. In 2000, 64.2% of Americans had employer-provided health insurance. By 2006, this percent had fallen 4.5 percentage points. Nearly 2.3 million fewer Americans had employment-based insurance in 2006 than in 2000. This decline does not take into account population growth. As many as 13 million more people would have had employer-provided health insurance in 2006 if the coverage rate had remained at the 2000 level.

Because of these large declines in employer-provided health insurance, workers and their families have been falling into the ranks of the uninsured at alarming rates. There were almost 5 million more uninsured workers in 2006 than in 2000. While uninsured workers are disproportionately young, non-white, less educated, and low wage, workers across the socio-economic spectrum have experienced losses in coverage. Even the most highly educated and highest wage workers had lower rates of insurance coverage in 2006 than in 2000.



http://www.epi.org/publication/bp203/

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Response to Pretzel_Warrior (Reply #2)

Thu Sep 26, 2013, 03:42 PM

8. Again the labor participation rate has been falling.

 

http://data.bls.gov/pdq/SurveyOutputServlet

If there are less people employed obviously there will be less people getting employer based health insurance.

2000 had the highest participation rate since 1948 at 67.3%. It is now 63.2%.

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Response to ProSense (Reply #9)

Thu Sep 26, 2013, 03:54 PM

13. This is the oddest post..."no" followed by links that confirm my point.

 

What am I missing?

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Response to dkf (Reply #13)

Thu Sep 26, 2013, 04:04 PM

14. I meant to say

no, it's dropping because of demographics, older people retiring.

If you look at the 25 to 54 age group it went up since the end of 2009, when it reached a low.

Remember, the health care law also funded an early retiree program.

FACT SHEET: The Affordable Care Act’s Early Retiree Reinsurance Program
http://www.healthreform.gov/affordablecareact.html

The program ran out of funding in 2012.

Update on ERRP Payment Processing
http://www.errp.gov/newspages/2012/20120217-errp-end-of-funds.shtml

Congress has been trying to expand it for the last couple of years

http://www.opencongress.org/bill/112-s1088/show
http://www.govtrack.us/congress/bills/113/hr2425

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Response to ProSense (Reply #14)

Thu Sep 26, 2013, 07:54 PM

17. the big point is creating a way for people not in conventional workforce but not yet 65

 

to get reasonable insurance coverage....and that is going to be more important as we all continue to deal with the churn of our wonderful modern global economy which often means many job/company changes and multiple periods without work.

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Response to dkf (Reply #8)

Thu Sep 26, 2013, 03:44 PM

10. which means we have had a health care crisis brewing for some time now

 

and moving the population away from employment-based health insurance is a key need which has been met in at least an initial and limited way.

Let's implement this thing, find out where the weak points are, and go fix them. My hope is we end up where the most progressive minds wanted to go but had no political capital to get--single payer health care.

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Response to Pretzel_Warrior (Original post)

Thu Sep 26, 2013, 02:59 PM

3. This issue gets me peeved. I see companies using Obama care as an excuse to lay off employees

when it has absolutely nothing to do with the ACA. Some are always looking for excuses to let people go and have been looking to fire people to help the bottom line for a long time. This is nothing but an opportunity to make a political statement and influence as many people as possible so they will say, "I got fired because of Obama care." I hear this all the time and it is nothing but Bovine Scatology.

It's like using a high number of FaceBook or Twitter friends, who are by the way a captive audience, to promote or sell a product or make a point.

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Response to Lint Head (Reply #3)

Thu Sep 26, 2013, 03:08 PM

4. yes. it's the same thing insurance companies have done since 2009

 

they were already dramatically raising premiums and lowering benefits throughout the 2000's, but since ACA passed, they have increased rates more and blamed ACA/Obamacare instead of their urgent and greedy profit taking they could feast on before things got real.

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Response to Lint Head (Reply #3)

Thu Sep 26, 2013, 03:24 PM

7. Reminds me of when

Bank of America attempted to charge a $5 debit card fee, blaming a provision in the Wall Street reform law that cut the credit card swipe fee from 44 cents to 24 cents. After cutting it in half, banks would still earn about 18 cents profit per transaction.

Bank of America’s quick reversal
http://www.washingtonmonthly.com/political-animal/2011_11/bank_of_americas_quick_reversa033215.php

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Response to ProSense (Reply #7)

Thu Sep 26, 2013, 04:41 PM

16. yes. they will never miss an opportunity to blame progressive policy for their greed/avarice

 

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Response to Pretzel_Warrior (Original post)

Thu Sep 26, 2013, 03:13 PM

5. Capitalism just does what it does:

Screw the "human resources," try to build shareholder value.

Even if it means lying about what you're doing.

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Response to Ron Green (Reply #5)

Thu Sep 26, 2013, 03:15 PM

6. which is why it is good to fight lies and prevarication with facts and context

 

one of the things I was most impressed about in Obama's 2008 campaign was his team's diligent and some might say obsessive focus on rapid response to false claims. They learned the horrible lessons of Kerry and team waiting weeks while Bush liars defined and maligned him.

Same with the important initiatives like Obamacare--we have to be ready to answer all of the objections and concerns but also the lies and outright attacks.

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Response to Pretzel_Warrior (Original post)

Thu Sep 26, 2013, 03:47 PM

11. Obamacare will have some effect on health insurance

And health care. Some of it will be positive and some of it will be negative. We will have to acknowledge the bad along with the good in order to make legitimate arguments.


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Response to Pretzel_Warrior (Original post)

Thu Sep 26, 2013, 03:47 PM

12. In other news, investors celebrated with champaigne and caviar as the Dow broke the all time high.

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Response to Scuba (Reply #12)

Thu Sep 26, 2013, 04:06 PM

15. We're in the money, we're in the money!!!

Yes, all the way to the bank, I should have bought stock in Health Insurance companies too.

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