TRENTON-Working people in New Jersey have suffered one of the nation's biggest declines in employer-provided health coverage, according to a new report released today in Washington.

The 5.6 percentage point drop is consistent with the national trend that has seen employers covering fewer workers, according to Prognosis Worsens for Workers' Health Care by Elise Gould of the Economic Policy Institute. The report tracks erosion of health insurance coverage between 2000 and 2004. Nationally, the report shows that the number of people without health coverage grew significantly for the fourth consecutive year. Almost 46 million Americans were uninsured in 2004, up by six million since 2000.

The report estimates that 206,000 persons in New Jersey lost health coverage during the period. While the overall coverage was down by 2.4 percentage points-to 68.2% from 70.6%-working people were more heavily affected. This is likely because of the availability of state programs that cover children in low-income families, but to a much lesser degree adults. Coverage for working people-defined in the report as those 18 to 64 years old who are employed for at least 20 hours a week, 26 weeks a year-declined in 2003-04 to 57.5%, from 63.2% in 1999-2000. All told, the report estimates that 162,000 working New Jerseyans lost health coverage.

The biggest drop in coverage for working people was in Virginia, at 6.7 percentage points. New Jersey was next at 5.6%, tied with Indiana and Massachusetts.

"These numbers show a distressing downward spiral," said Jon Shure, president of New Jersey Policy Perspective. "In more and more cases, employers are pushing their responsibilities onto taxpayers. The evidence is growing that we need new ways to think about how to make sure everyone has access to health care." Earlier this year, New Jersey announced an expansion of the FamilyCare program for low-income persons. NJPP has recommended that other steps also be taken to make sure that employers are not pushing workers and their families into state programs. In a report released last August (http://www.njpp.org/rpt_familycare.html), NJPP found that Wal-Mart and many other large, profitable companies had large numbers of participants in FamilyCare.

The EPI report, released in New Jersey by NJPP, does not suggest why there have been continual drops in health coverage by employers. It focuses on what EPI calls "the grim statistics" that show the biggest loss of health coverage coming among those with the lowest incomes and among minority populations. It notes that the situation could worsen because of discussions underway in Washington to reduce tax incentives for employers to provide health coverage, and pending federal legislation that would lower funding for state programs that help to fill the gap.

The full text of Prognosis Worsens for Workers' Health Care can be found at http://www.epi.org/content.cfm/bp167

TAX REFORM

WORK & WAGES

BUDGET & FISCAL POLICY

TRANSIT ISSUES

ECONOMIC DEVELOPMENT

VOTING & GOVT REFORM

© 2008 New Jersey Policy Perspective