Pennsylvania Second Only to Michigan in loss of Employer-Based Health Insurance

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October 13, 2008

2007 marked the seventh year of declining employment-based insurance in the U.S., according to a new report from the Washington-based Economic Policy Institute. While 41 states posted significant declines in coverage by employers, Pennsylvania again led most states in that downward trend. The Erosion of Employer-Sponsored Health Insurance compared coverage rates in 2001 to 2007, finding that Pennsylvania outpaced every state but Michigan in the loss of employer coverage. Some of the key findings:

  • Nearly 561,000 fewer non-elderly Pennsylvanians had coverage through an employer in 2006-2007 than in 2000-2001.
  • Only Michigan fared worse than Pennsylvania, seeing a decline in employment-based coverage of more than 639,000 during the same time period.
  • More than 200,000 fewer Pennsylvania children had employment-based coverage in 2006-2007 than in 2000-2001, as they lost coverage faster than the national average.
  • Nearly 317,000 fewer non-elderly Pennsylvania workers were insured under policies provided by their own employer in 2006-2007 than in 2000-2001.
  • Nationally, 2.7 million non-elderly Americans lost employment-based coverage over the period.

The report used U.S. Census data to compare the peak of the business cycle in 2001 with 2007, the likely peak of the latest expansion. Data are averaged over two years to reduce sampling error. PBPC has created a two-page summary of the report that can be downloaded in PDF format. The full 22-page briefing paper can be downloaded directly from the EPI website.