How the Slowing U.S. Economy Threatens Employer-Based Health Insurance

With the slowing of the U.S. economy, the focus of federal health policy has shifted from expanding to protecting health insurance coverage. Rising unemployment and health care costs threaten to erode employer-based health insurance coverage, the major source of health coverage in the nation. State health insurance programs such as Medicaid are under duress as well. This retrenchment occurs against a backdrop of growing federal and state budget problems and unforeseen demands on the health care system because of the September 11 and bioterrorism attacks. This report summarizes recent findings of other reports and provides new analysis of job-based health insurance, unemployment, and the economic consequences of the lack of health coverage. It also discusses policy options and issues.