More Good News For Obamacare: Employer Health Coverage Hasn’t Crashed

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The share of the population with employer health insurance has been slowly eroding for years. The chart on the right tells the story: total coverage rates have dropped from 70 percent to 62 percent since 2001. The trend is pretty clear: the number of workers covered by employer insurance has been dropping about half a percentage point per year for more than a decade.

So has Obamacare accelerated this trend? There have long been fears that it might: once the exchanges were up and running, employers might decide that it was cheaper to ditch their own insurance and just pay their workers extra to buy coverage on the open market. But a new study released by Health Affairs says that hasn’t happened:

We found essentially no change in offer rates throughout the study period. Overall, the rates stayed steady, at around 82 percent. Offer rates in small firms also held steady, at around 61 percent….We found no change in take-up rates overall, or by income or firm size, between June 2013 and September 2014.

….As with offer and take-up rates of employer-sponsored insurance, there were no significant differences in coverage rates for the insurance overall or for any subgroup. The rates stayed roughly constant at about 71 percent across all workers, about 50 percent among workers in small firms, and about 82 percent among workers in large firms. The rates also remained constant among low- and high-income workers in either small or large firms.

Note that the percentages themselves differ between the Kaiser numbers and the study numbers thanks to differences in methodology. And there are, of course, plenty of reasons we might see only small changes in employer coverage. The economy has improved. Inertia might be keeping things in check for a while. Perhaps as Obamacare becomes settled law and its benefits become more widely known, more employers will drop their own coverage.

Those are all possibilities. For now, though, it looks as though fears of employers dumping health coverage were unfounded. It’s yet more good news for Obamacare.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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