Fewer Workers Taking Health Insurance

A Kaiser Family Foundation study found that low-income workers were the least likely to sign up for employer health-care coverage.

Employers have responded to rising health-care costs with greater cost-sharing — contributing to a decline in the number of firms offering insurance and encouraging companies to hire part-time or contract workers or raise eligibility requirements.

From 2000 to 2006, the number of companies offering health insurance benefits fell from 69 percent to 61 percent. The Kaiser study also found that 89 percent of workers take health insurance when they pay from 0 to 2.6 percent of the costs versus only 77 percent when employees pay 56.3 percent or more of the cost.

The results suggest that many workers will forego their employer’s coverage if their contribution is too high.

Source: Plan Sponsor