Public insurance critical as employers drop health coverage

Data released from the U.S. Census today shows employers in Washington state continue to drop health care coverage for workers, while poverty here and nation-wide remains exceptionally high.  This continued decline in family economic security puts our future at risk. To put our state on a stronger path to prosperity, we must invest in the building blocks of job creation and economic growth: strong schools, quality infrastructure, and safe communities. 

Contrary to popular rhetoric, public structures play a critical role for Washingtonians in the wake of the recession. More employers are eliminating health insurance coverage, making public insurance an even more essential option for Washingtonians in the current economy.  The data show the following trends for Washingtonians under age 65:

• The rate of uninsured people in Washington increased from 12.5 percent to 14.9 percent since the recession began;  now more than 880,000 Washingtonians currently lack health insurance;
• The percent of Washingtonians with employer-based health insurance dropped from 67 percent before the recession to 61 percent in 2010 (Figure 1); and
• Over 208,000 more Washingtonians accessed public health insurance since the recession began.

It is clear that without Medicaid and other programs that provide health coverage, the increase in the number of Washingtonians without insurance, particularly children, would have been much worse. Not only are fewer employers offering insurance to their workers, those people who lose their jobs also lose their health coverage. 

While the need for affordable health coverage is increasing. Between June 2009 and August 2011 the waiting list for the Basic Health Plan, Washington’s public insurance plan, has more than doubled.  As of August 2011, the list was 153,000 people… and growing. Apple Health for Kids, our state’s health insurance plan for children, has so far absorbed many of the children losing coverage due to parental unemployment, but is consistently put on the budget chopping block.

As employer-based coverage declines and more people slip into poverty, Washingtonians will have a harder time accessing high quality, affordable health care.  The Affordable Care Act (ACA), set to take effect in 2014, will eventually provide health coverage to Washingtonians who lack employer-based coverage or cannot afford to purchase coverage on their own.

In the meantime, our state should do everything possible to strengthen our public insurance programs so Washingtonians can ensure the health and well-being of their families and children.  It is essential that we not allow budget shortfalls to threaten funding in areas that help the economy in the short-term and the long-term, including education, transportation, and public safety.   Now more than ever, we need to take a balanced approach that includes revenues, by developing a state budget that invests in the future of our children, families, and communities.