Americans with Employer-Based Coverage Fell for 9th Straight Year

The percent of Americans under age 65 covered by employer-based health insurance fell for the ninth consecutive year in 2009, according to a report by the Economic Policy Institute.

The employer-based rate dropped from 61.9 percent in 2008 to 58.9 percent last year. Meanwhile, overall numbers of uninsured Americans under age 65 grew by 4.3 million since 2008, to 50 million in 2009. That number has grown by more than 11.8 people million since 2000.

The Economic Policy Institute predicted more losses in employer-sponsored coverage in the near future due to rising unemployment. The unemployment rate is expected to increase to 9.7 percent in 2010 and 9.9 percent in 2011.

Although the country was already in recession in 2008, the economy sharply deteriorated in 2009. From 2008 to 2009, the unemployment rate increased from 5.8 percent to 9.3 percent, the largest one-year increase on record. No demographic group has been spared from the erosion of job-based insurance in the past decade, with declines for people of all ages, races, education and income levels.

The share of those under 65 without any insurance has also increased over the 2000s, from 15.5% in 2000 to 18.8% in 2009. Increasing public insurance coverage, particularly among children, is the only reason the uninsured rate did not rise one-for-one with losses in employer-sponsored coverage. Provisions in the healthcare reform law further mitigated the damage by subsidizing COBRA and helping to shore up Medicaid funding.

"The current recession highlights how dependent Americans are on a healthy labor market for all facets of economic security, including access to healthcare," the report said.

Read the report by the Economic Policy Institute on healthcare insurance (pdf).

Read more about employer-based coverage:

- Non-Profit Hospitals See Negative Outlook From Ratings Agencies Due to High Debt Loads, Lower Reimbursements, Uncovered Patients

- Americans Paying More Even With Employer-Sponsored Healthcare, HHS Reports


- How 5 Key Economic Groups Are Affected by Healthcare Reform


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