employment-based coverage: is the erosion in coverage the tipping point? paul fronstin, ph.d....
TRANSCRIPT
Employment-Based Coverage: Is The Erosion in
Coverage the Tipping Point? Paul Fronstin, Ph.D.
Director, Health Research and Education Program
Employee Benefit Research Institute
Copyright© - Employee Benefit Research Institute Education and Research Fund, 1978-2007. All rights reserved.
The information contained herein is not to be construed as an attempt to provide legal, accounting, actuarial, or other such professional advice. Permission to copy or print a
personal use copy of this material is hereby granted and brief quotations for the purposes of news reporting and education are permitted. Otherwise, no part of this material may be
used or reproduced without permission in writing from EBRI-ERF.
2
Characterizations of the Employment-Based Health Benefits
System• Vanishing
• Employers are fleeing the system
• Employer-based health care is ending. It is dying in front of our very eyes
• Employer-based health coverage is melting away like a popsicle on the summer sidewalk
3
Percentage of Employers With 3-199 Employees Offering Health Benefits,
2000-2007
59%
68%66%
63%
59%
60%
57%
59%
61%
63%
65%
67%
69%
2000 2001 2002 2003 2004 2005 2006 2007
Source: Kaiser Family Foundation.
4
Percentage of Employers With 3-199 Employees Offering Health Benefits,
1996-2007
63%60%
59%59%
59%
65%68%
66%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Kaiser Family Foundation.
5
Worker Eligibility and Take-Up Rates for Own Employer Health Benefits,
Wage and Salary Workers Ages 18-64, 1988-2005
74.0%76.2%74.9%74.0%73.6%
75.7%77.8%
87.9% 86.5% 85.2% 84.9% 84.8% 84.0% 83.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1988 1990 1992 1994 1996 1998 2000 2002 2004
Eligibility rate Take-Up Rate
Source: Employee Benefit Research Institute estimates based on data from the Current Population Survey.
6
Percentage of Workers, Ages 18-64, With Employment-Based Health
Benefits, 1994-2006
73.3% 73.3% 73.5% 73.6% 74.2% 74.6% 74.9% 74.3% 73.0% 72.1% 71.7% 71.4% 70.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: Employee Benefit Research Institute estimates based on data from the Current Population Survey, March Supplement.
7
Percentage of Workers, Ages 18-64, With Employment-Based Health
Benefits, 2000-2006
74.9%
74.3%
73.0%
72.1%
71.7%
71.4%
70.9%
70%
71%
72%
73%
74%
75%
76%
2000 2001 2002 2003 2004 2005 2006
Source: Employee Benefit Research Institute estimates based on data from the Current Population Survey, March Supplement.
8
Average Monthly Premiums for Employee-Only Coverage and Family
Coverage, and CPI, 2000-2006
28 30 38 42 47 51 52
248
226222
201
174
150138
172.2 177.1 201.6195.3188.9184
179.9
0
50
100
150
200
250
300
2000 2001 2002 2003 2004 2005 2006
Employee-Only Coverage Family Coverage CPI
Source: Kaiser Family Foundation and Bureau of Labor Statistics (BLS).
9
Distribution of Deductibles for Employee-Only PPO Coverage, 2000-
2006
86%
14%
80%
20%
77%
23%
69%
31%
71%
29%
67%
33%
62%
38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$1 - $499 $500+
2000 2001 2002 2003 2004 2005 2006
Source: Kaiser Family Foundation.
10
Distribution of Physician Office Visit Copayments, All Plan Types, 2004-2006
57%
39%
48% 49%45%
53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
$5-$15/visit $20 or more/visit
2004 2005 2006
Source: Kaiser Family Foundation.
11
Average Co-Payment for Prescription Drugs, 2000-2006
7
1317
8
1520
9
17
25
9
19
29
10
21
33
48
10
22
35
74
11
24
38
63
0
10
20
30
40
50
60
70
80
Generic Drugs Preferred Drugs Non-Preferred Drugs Fourth-Tier
2000 2001 2002 2003 2004 2005 2006
Source: Kaiser Family Foundation.
12
Characterizations of the Employment-Based Health Benefits
System• Vanishing
• Employers are fleeing the system
• Employer-based health care is ending. It is dying in front of our very eyes
• Employer-based health coverage is melting away like a popsicle on the summer sidewalk
EBRI
1000 13th Street NW, Suite 878
Washington, DC 20005
Phone: 202-659-0670
Fax: 202-775-6312
www.ebri.org