Study shows shift in children’s health insurance from private to public plans
Kevin Lyons
More and more parents are switching the health care coverage of their children from private plans to public ones, mainly because of a poor economy that has sheared millions of jobs, according to a study conducted by a University of New Hampshire think tank.
Forty-four states and Washington, D.C., have seen huge increases in the number of children covered by public health insurance plans such as Medicaid or the Children’s Health Insurance Program (CHIP), according to the Carsey Institute.
Meanwhile, 27 states have seen decreases in private health insurance coverage for children, according to the study, which reviewed U.S. Census Bureau figures collected in 2008 and 2009 to examine changes in overall insurance coverage.
The study says children 18 and under in Midwestern inner-city areas saw the biggest shift from private to public insurers, with public insurance coverage rising 6.5 percentage points and private insurance coverage dropping 4.3 percentage points from 2008 to 2009.
Arizona, D.C., Florida, Hawaii and Oregon were the places with increases of at least 7 percentage points in children going from private to public health insurance.
Since nearly two-thirds of Americans under age 65 get health insurance through their jobs, the change in health insurance coverage for children reflects the nation’s unemployment patterns, according to the study.
“When people become unemployed, not only do they lose their employment-based private insurance, but, with the loss of income, families may become newly eligible for public plans. In addition, the generally poor economy and expanded eligibility for public plans may also play less direct roles in the shifting rates of health insurance among children,” the researchers say.
Other highlights:
• Health insurance coverage for children increased 1.3 percentage points from 2008 to 2009, with much of that growth in urban and rural areas.
• The Northeast had the highest rate of coverage for children, 95 percent.
• The South had the lowest coverage rate, 89 percent.
