Number of Americans with Job-Based Health Benefits Increased in 2000 While Uninsured Declined

More than 67 percent of Americans under age 65 - or 163.4 million Americans - were covered by an employment-based health plan during 2000 up from 1999, when 66.6 percent of the nonelderly population was covered by an employment-based health plan. The expansion in employment-based health insurance coverage continued to be coupled with a decline in the number and percentage of Americans without health insurance coverage. Between 1999 and 2000, the number of uninsured nonelderly Americans declined from 39 million to 38.5 million, while the percentage declined from 16.2 percent to 15.9 percent. The main reason for the decline in the number of uninsured Americans during 2000 was the strong economy at that time, which resulted in low unemployment. Tight labor markets gave employers an added incentive to offer health benefits in order to attract qualified workers. Despite rising health insurance costs, employers were increasingly offering health benefits to workers in 2000. Data for 2000 reflect trends that were taking place before the economic slowdown in 2001. These trends could easily change in the future as data become available concerning the combined effect of the economic slowdown and rising health benefit costs. This paper presents data on recent trends in health insurance coverage and provides a brief snapshot of health insurance coverage in the United States