Economy Causing Lower Health Insurance Coverages

Posted on January 5, 2009 @ 6:04 am
by Ethan Kalvin

The past year shows a clear decline in health insurance coverage for Americans, according to a study by the Employee Benefit Research Institute (EBRI). In spite of gains in prior years, the current figures look grim.

The non-profit research organization just recently released the report which shows that the number of people covered with an employer-sponsored health insurance plan will most likely drop this year.The number of Americans with an employer’s coverage has decreased since 2000, but that was matched with an increase in the number of people who found coverage in the individual health insurance market.

Americans were buying their own health insurance plans more and more frequently this past year, according to a report by the Kansas City Star. They state that the past year’s economy combined with lower unemployment rates, contributed to the ability of more workers to purchase their own plans.

This is not the current situation, however. With the economy on the downswing, and with unemployment rising, not as many people can afford their own health insurance.

Work loss not withstanding, higher food prices, higher gas prices and families struggling to pay mortgages are all causes for health insurance coverage to be amongst the first to be cut from a family’s budget.

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