Drop of 431,000 Wisconsinites with Employer Coverage Highlights Importance of New Opportunities for Improving Access to Care 

In 2011, the percentage of non-elderly Americans covered by employer-sponsored health insurance (ESI) declined for the eleventh year in a row, according to a report issued Wednesday by the Economic Policy Institute (EPI).  Although growth in public coverage has picked up some of the slack in coverage (especially for children), the number of Americans who are uninsured climbed by 11.7 million since 2000, and workers age 19 to 64 were nearly 30 percent more likely to be uninsured in 2011 than in 2000!

The report’s author, Elise Gould, analyzed U.S. Census Bureau data on insurance coverage from 2000 through 2011. Some of the key findings include the following:

• The number of people with coverage obtained through an employer fell by 14.2 million during that 11-year period, and by more than 431,000 in Wisconsin.
• About 29 million more people under age 65 would have had ESI in 2011 if the coverage rate had remained at the 2000 level (69.2 %).
• Although the decline in ESI among non-elderly Americans slowed in 2011 – thanks in large part to the part of the health care reform law allowing young adults to be covered on a parent’s policy – ESI continued to drop in 2011, falling to 58.3% from 58.6% in 2010. 
• The drop in ESI coverage from 2000 to 2011 was experienced nationwide, with a statistically significant decrease in non-elderly coverage in all but one state.

The analysis is based on data from the Census Bureau’s Current Population Survey (CPS) because the much larger American Community Survey doesn’t date back as far.  Since the CPS uses a much smaller survey sample, it’s necessary to average together two years of data for each state.Looking specifically at the Wisconsin data, one finds the following:

• The share of Wisconsinites who don’t have ESI fell from 78.1% in 2000/2001 to 66.1% in 2010/2011 – as the number with ESI dropped by about 431,000.
• Wisconsin still has one of the strongest bases of employer coverage – tied with Iowa for the 8th highest percentage of ESI for the non-elderly population – however, that’s down from the 3rd highest in 2000/2001.
• Focusing just on ESI coverage of non-elderly workers (and excluding their spouses and dependents), Wisconsin dropped from 81.4% in 2000/2001 to 72.9% in 2010/11.

The report helps make it clear why it’s extremely important to utilize the options in the Affordable Care Act (ACA) that have the potential to significantly improve access to quality, affordable health insurance.

Although some people argue that certain aspects of the ACA could cause a decrease in ESI, the Census data from Massachusetts, which has implemented polices very similar to the ACA, indicate that the Bay State continues to have a very strong base of employer insurance.  Specifically, Massachusetts had the second highest rate of employer coverage for the non-elderly population last year, and it had the third smallest percentage decline in ESI coverage from 2000/01 to 2010/11.

If health care providers and state policymakers are serious about addressing the “hidden tax” that uncompensated care imposes on Wisconsin businesses and individuals with insurance, it’s time to make plans to use the exciting opportunities in the ACA to significantly reduce the number of uninsured state residents who are relying on emergency rooms as their primary source of health care.

Jon Peacock