More Good News For Obamacare: Employer Health Coverage Hasn’t Crashed


The share of the population with employer health insurance has been slowly eroding for years. The chart on the right tells the story: total coverage rates have dropped from 70 percent to 62 percent since 2001. The trend is pretty clear: the number of workers covered by employer insurance has been dropping about half a percentage point per year for more than a decade.

So has Obamacare accelerated this trend? There have long been fears that it might: once the exchanges were up and running, employers might decide that it was cheaper to ditch their own insurance and just pay their workers extra to buy coverage on the open market. But a new study released by Health Affairs says that hasn’t happened:

We found essentially no change in offer rates throughout the study period. Overall, the rates stayed steady, at around 82 percent. Offer rates in small firms also held steady, at around 61 percent….We found no change in take-up rates overall, or by income or firm size, between June 2013 and September 2014.

….As with offer and take-up rates of employer-sponsored insurance, there were no significant differences in coverage rates for the insurance overall or for any subgroup. The rates stayed roughly constant at about 71 percent across all workers, about 50 percent among workers in small firms, and about 82 percent among workers in large firms. The rates also remained constant among low- and high-income workers in either small or large firms.

Note that the percentages themselves differ between the Kaiser numbers and the study numbers thanks to differences in methodology. And there are, of course, plenty of reasons we might see only small changes in employer coverage. The economy has improved. Inertia might be keeping things in check for a while. Perhaps as Obamacare becomes settled law and its benefits become more widely known, more employers will drop their own coverage.

Those are all possibilities. For now, though, it looks as though fears of employers dumping health coverage were unfounded. It’s yet more good news for Obamacare.

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

Share your feedback: We’re planning to launch a new version of the comments section. Help us test it.