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The Erosion of Employer-Based Health Coverage and the Threat to Workers' Health Care

For many Americans enrolled in employer-based health plans, insurance premiums and cost-sharing burdens are on the rise. At the same time, many Americans who have lost their jobs and health benefits are finding that temporary coverage is too expensive. According to the new Commonwealth Fund 2002 Workplace Health Insurance Survey, by January 2002, one-third of working adults with employer-sponsored insurance were faced with higher deductibles or copayments or had their benefits reduced compared with the previous year. One of four workers had significantly higher premiums, while two of five had higher premium payments or increased cost-sharing. Low-income workers were the most likely to experience these reduced benefits and increased health care costs.

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The Erosion of Employer-Based Health Coverage and the Threat to Workers' Health Care, Jennifer N. Edwards, Dr.P.H., Michelle M. Doty, Ph.D., and Cathy Schoen, M.S., The Commonwealth Fund, August 2002