Wealthy Fastest Growing Segment of Uninsured Population
According to recent Census Bureau data, the number of Americans without health insurance rose from 38.7 million in 2000 to roughly 43.6 million in 2002. [1] These growing ranks of uninsured individuals have caught the attention of public health advocates.
Income and Insurance Coverage
It is often assumed that an inability to afford insurance is the primary reason for not possessing any. The Census numbers show the uninsured coming from a broad spectrum of incomes. In fact, the greatest increase in the uninsured took place among the wealthiest Americans, while the least wealthy actually experienced a decline.
Among those with incomes greater than $75,000, the number of uninsured rose 114 percent. Those with incomes between $50,000 and $75,000 rose 57 percent, those with incomes between $25,000 and $50,000 rose 17 percent, and for those with incomes below $25,000, the number of uninsured fell by 17 percent. [2]
Job Fluctuation
Much of the total increase is likely the result of job change. The Census Bureau finds that 74.7 percent of periods without insurance last for less than one year. Of the remainder, only 2.5 percent last beyond three years. According to the Blue Cross Blue Shield Association, just under half of those with incomes below $50,000 who do not qualify for public coverage spent only six months or less without insurance. [3]
Crowding Out
Government-run insurance can also have the effect of “crowding out” private insurance. The Quarterly Journal of Economics reports that between 50 and 70 percent of new Medicaid spending in the early 1990s was offset by a reduction in employer coverage. With alternatives such as Medicaid and CHIP available, many lower income employees may simply prefer higher wages to employer-provided coverage. [5]
Notes
[1] Devon M. Herrick, “Uninsured by Choice: Update,” Brief Analysis No. 460 (Dallas,
[2] Ibid.
[3] Ibid.
[4] Ibid.
[5] Ibid.
