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Explaining the decline in health insurance coverage, 1979-1995.

R Kronick, T Gilmer

    Health Affairs (Project Hope)
    |March 26, 1999
    PubMed
    Summary

    Rising healthcare spending outpaced income, reducing worker health insurance coverage. Slowing spending growth could increase coverage, especially for low-income workers, making insurance affordable.

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    Area of Science:

    • Health Economics
    • Public Health Policy

    Background:

    • Worker health insurance coverage declined significantly between 1979 and 1995.
    • This decline correlated with healthcare spending rising faster than personal income.

    Purpose of the Study:

    • To analyze the impact of healthcare spending growth on health insurance coverage.
    • To simulate future coverage trends under different spending scenarios.

    Main Methods:

    • Econometric analysis of historical data (1979-1995).
    • Simulation modeling for future projections (1996-2005).

    Main Results:

    • Rapid healthcare spending growth is the primary driver of decreased insurance coverage.
    • Slower spending growth is projected to increase health insurance coverage rates.
    • Affordability of health insurance remains a critical issue for low-income workers.

    Conclusions:

    • Controlling healthcare spending growth is essential for improving worker health insurance access.
    • Policy interventions targeting spending growth can enhance coverage affordability for vulnerable populations.

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