Transcript Employment-Based Coverage: Is The Erosion in Coverage the Tipping Point? Paul Fronstin, Ph.D. Director, Health Research and Education Program Employee Benefit Research Institute Copyright© - Employee.

Employment-Based
Coverage: Is The Erosion in
Coverage the Tipping Point?
Paul Fronstin, Ph.D.
Director, Health Research and Education Program
Employee Benefit Research Institute
Copyright© - Employee Benefit Research Institute Education and Research Fund, 1978-2007. All rights
reserved.
The information contained herein is not to be construed as an attempt to provide legal, accounting,
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from EBRI-ERF.
Characterizations of the
Employment-Based Health Benefits
System
• Vanishing
• Employers are fleeing the system
• Employer-based health care is ending. It is
dying in front of our very eyes
• Employer-based health coverage is melting
away like a popsicle on the summer
sidewalk
2
Percentage of Employers With 3-199
Employees Offering Health Benefits,
2000-2007
69%
67%
68%
66%
65%
63%
63%
61%
60%
59%
59%
59%
57%
2000
2001
2002
2003
Source: Kaiser Family Foundation.
2004
2005
2006
2007
3
Percentage of Employers With 3-199
Employees Offering Health Benefits,
1996-2007
80%
65%
70%
68%
63%
60%
50%
66%
60%
59%
59%
59%
40%
30%
20%
10%
0%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Kaiser Family Foundation.
4
Worker Eligibility and Take-Up Rates for Own
Employer Health Benefits,
Wage and Salary Workers Ages 18-64, 1988-2005
100%
90%
87.9%
86.5%
77.8%
75.7%
85.2%
84.9%
84.0%
84.8%
83.5%
80%
70%
73.6% 74.0%
60%
74.9%
76.2%
74.0%
50%
40%
Eligibility rate
Take-Up Rate
30%
20%
10%
0%
1988
1990
1992
1994
1996
1998
Source: Employee Benefit Research Institute estimates based on
data from the Current Population Survey.
2000
2002
2004
5
Percentage of Workers, Ages 18-64, With
Employment-Based Health Benefits,
1994-2006
90%
80%
73.3%
73.3%
73.5%
73.6%
74.2%
74.6%
1994
1995
1996
1997
1998
1999
74.9%
74.3%
73.0%
72.1%
71.7%
71.4%
70.9%
2001
2002
2003
2004
2005
2006
70%
60%
50%
40%
30%
20%
10%
0%
2000
Source: Employee Benefit Research Institute estimates based on data from the Current Population
Survey, March Supplement.
6
Percentage of Workers, Ages 18-64, With
Employment-Based Health Benefits,
2000-2006
76%
75%
74.9%
74.3%
74%
73.0%
73%
72.1%
72%
71.7%
71.4%
70.9%
71%
70%
2000
2001
2002
2003
2004
2005
Source: Employee Benefit Research Institute estimates based on data from the Current Population
Survey, March Supplement.
2006
7
Average Monthly Premiums for
Employee-Only Coverage and Family
Coverage, and CPI, 2000-2006
300
248
250
222
226
201
200
172.2
177.1
179.9
174
150
138
195.3
184
201.6
188.9
150
Employee-Only Coverage
Family Coverage
CPI
100
50
28
30
38
2000
2001
2002
42
47
51
52
2003
2004
2005
2006
0
Source: Kaiser Family Foundation and Bureau of Labor Statistics (BLS).
8
Distribution of Deductibles for
Employee-Only PPO Coverage, 20002006
100%
90%
2000
86%
80%
80%
70%
2001
2002
2003
2004
2005
2006
77%
69% 71% 67%
62%
60%
50%
38%
40%
31% 29%
30%
20%
20%
33%
23%
14%
10%
0%
$1 - $499
$500+
Source: Kaiser Family Foundation.
9
Distribution of Physician Office Visit
Copayments, All Plan Types, 2004-2006
80%
2004
70%
60%
50%
2005
2006
57%
53%
48%
49%
45%
39%
40%
30%
20%
10%
0%
$5-$15/visit
$20 or more/visit
Source: Kaiser Family Foundation.
10
Average Co-Payment for
Prescription Drugs, 2000-2006
80
74
2000
70
2001
2002
2003
2004
2006
2005
63
60
48
50
40
33
38
29
30
20
10
35
9 9 10 10 11
7 8
13 15
17 19
21 22
25
24
17
20
0
Generic Drugs
Preferred Drugs
Non-Preferred Drugs
Fourth-Tier
Source: Kaiser Family Foundation.
11
Characterizations of the
Employment-Based Health Benefits
System
• Vanishing
• Employers are fleeing the system
• Employer-based health care is ending. It is
dying in front of our very eyes
• Employer-based health coverage is melting
away like a popsicle on the summer
sidewalk
12
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