Income, Poverty, and Health Insurance Coverage in the United States: 2007

U.S. Census Bureau
August 2008

What Is Health Insurance Coverage?

For reporting purposes, the Census Bureau broadly classifies health insurance coverage as private coverage or government coverage. Private health insurance is a plan provided through an employer or a union or purchased by an individual from a private company. Government health insurance includes the federal programs Medicare, Medicaid, and military health care; the State Children’s Health Insurance Program (SCHIP); and individual state health plans. People were considered “insured” if they were covered by any type of health insurance for part or all of the previous calendar year. They were considered “uninsured” if they were not covered by any type of health insurance at any time in that year.

Highlights

  • Both the percentage and number of people without health insurance decreased in 2007. The percentage without health insurance was 15.3 percent in 2007, down from 15.8 percent in 2006, and the number of uninsured was 45.7 million, down from 47.0 million.
  • The number of people with health insurance increased to 253.4 million in 2007 (up from 249.8 million in 2006). The number of people covered by private health insurance (202.0 million) in 2007 was not statistically different from 2006, while the number of people covered by government health insurance increased to 83.0 million, up from 80.3 million in 2006.
  • The percentage of people covered by private health insurance was 67.5 percent, down from 67.9 percent in 2006. The percentage of people covered by employment-based health insurance decreased to 59.3 in 2007 from 59.7 percent in 2006. The number of people covered by employment-based health insurance, 177.4 million, was not statistically different from 2006.
  • The percentage of people covered by government health insurance programs increased to 27.8 percent in 2007, from 27.0 percent in 2006. The percentage and number of people covered by Medicaid increased to 13.2 percent and 39.6 million in 2007, up from 12.9 percent and 38.3 million in 2006.
  • In 2007, the percentage and number of children under 18 years old without health insurance were 11.0 percent and 8.1 million, lower than they were in 2006 — 11.7 percent and 8.7 million. Although the uninsured rate for children in poverty decreased to 17.6 percent in 2007, from 19.3 percent in 2006, children in poverty were more likely to be uninsured than all children.
  • The uninsured rate and number of uninsured for non-Hispanic Whites decreased in 2007 to 10.4 percent and 20.5 million (from 10.8 percent and 21.2 million in 2006). The uninsured rate for Blacks decreased to 19.5 percent in 2007 from 20.5 percent in 2006. The number of uninsured Blacks in 2007 was not statistically different from 2006, at 7.4 million.
  • The percentage and the number of uninsured Hispanics were 32.1 percent and 14.8 million in 2007, lower than 34.1 percent and 15.3 million in 2006.

http://www.census.gov/hhes/www/hlthins/hlthin07/hlth07asc.html

And…

Number of Uninsured Drops…

By The Associated Press
The Washington Post
August 26, 2008

The Census Bureau reports that the number of people lacking health insurance dropped by more than 1 million in 2007, the first annual decline since the Bush administration took office.

http://www.washingtonpost.com/wp-dyn/content/article/2008/08/26/AR2008082600863.html?hpid=moreheadlines

The Associated Press story just released on the decline of 1.3 million in the numbers of uninsured will surely be welcome news. It was especially good news for those who gained coverage in 2007. Should we be celebrating? Let’s look at some of the statistics.

  • The percentage of people covered by employment-based health insurance declined by 0.4 percent, continuing a downward trend. The foundation of employment-bsed coverage continues to deteriorate.
  • The percentage of people covered by government health insurance programs increased 0.8 percent, more than offsetting the decline in employer-sponsored coverage. The net improvement in the numbers is due to an expansion of government programs.
  • The percentage of people covered by Medicaid increased 0.3 percent. That amounts to an increase of 1.3 million individuals, which just happens to be the same number as the decline in the uninsured. The chronic underfunding of this program has sacrificed access because of the lack of willing providers. Expanding a program that has perpetuated impaired access does not seem to be a wise policy choice.
  • People who were uninsured for only part of the year were counted in this study as being insured. Yet studies have confirmed that having only intermittent coverage impairs access and outcomes.
  • This study remains silent on the explosion in the rate of underinsurance, a phenomenon that is difficult to measure anyway. Counting the numbers of people who have insurance coverage provides a very incomplete picture if that coverage does not protect individuals from financial hardship in the face of medical need.
  • A slight improvement in the percentages for Blacks and Hispanics is of little consolation when compared to the enormity of these disparities.

Celebration time? Don’t think so.