From the late 1980s to the mid 1990s, the proportion of the population with employment-based health insurance declined while uninsured rates increased. One prominent explanation for this trend is that coverage became increasingly less affordable, especially for low wage workers. We investigate this hypothesis by comparing several measures of the health insurance status of low wage (< $7.00 per hour in 1996 dollars) and higher wage earners. We find that low wage workers have borne the decline in employment-based coverage and that the erosion in coverage is due to shifts in the likelihood of coverage among low-wage population subgroups rather than changes in the demographic composition of the low wage earner population. We also find that low wage workers are more sensitive to changes in premiums and income than are higher wage workers. Our findings suggest that affordability appears to be an important factor in the decline of employment-based coverage for low wage workers.
Learning Objectives: Assess barriers to health insurance for low wage workers
Keywords: Health Insurance, Access to Care
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.