Tue Aug 3, 7:10 AM ET
By Julie Appleby, USA TODAY
The percentage of people who get health insurance through employers fell sharply from 2001 to 2003, resulting in 9 million fewer people with employer coverage after accounting for population growth, researchers said Tuesday.
Unemployment and the rising cost of insurance were blamed for the falloff, which saw the percentage of people under 65 who get health insurance through employers go from 67% in 2001 to 63% in 2003. Employer coverage is the main way Americans get insurance.
During the same years, enrollment in government health programs such as Medicaid grew, preventing a significant increase in the uninsured, according to the study by the non-partisan Center for Studying Health System Change in Washington.
Job losses caused by the sluggish economy were the main reason for the drop in people covered by employer health plans. But insurance premiums that increased 28% during the period also contributed to the decline, as some employers stopped offering coverage, while at some firms workers decided not to enroll because their share of the cost rose.
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