As Medicaid/SCHIP eligible income levels have expanded into the middle class, more and more people who switch to government provided insurance have dropped private insurance to do so. Gruber and Simon estimated that 6 out of 10 new SCHIP enrollees were previously insured. Once on cheap government insurance, why not seek a job that substitutes higher cash wages for benefits?
Government coverage has been rising for years. When analyzing uninsured populations, the ranks of the poorest (< $25,000 household income) has been relatively stable because of Medicaid Expansions and S-SCHIP Expansion. Research has shown that 50% to 75% of newly insured individuals after a public expansion are people who dropped private coverage. Many health policy wonks have pointed to evidence that firms sometimes drop coverage when the large proportion of their workers become eligible for free coverage. The recession undoubtedly has boosted this process. But substituting public coverage for private coverage is also at work.
Who can blame them? Obama Care is gong to be a killer.
Agree with Scott. How can you blame the employers?
As Medicaid/SCHIP eligible income levels have expanded into the middle class, more and more people who switch to government provided insurance have dropped private insurance to do so. Gruber and Simon estimated that 6 out of 10 new SCHIP enrollees were previously insured. Once on cheap government insurance, why not seek a job that substitutes higher cash wages for benefits?
Crowd-out on steroids.
Government coverage has been rising for years. When analyzing uninsured populations, the ranks of the poorest (< $25,000 household income) has been relatively stable because of Medicaid Expansions and S-SCHIP Expansion. Research has shown that 50% to 75% of newly insured individuals after a public expansion are people who dropped private coverage. Many health policy wonks have pointed to evidence that firms sometimes drop coverage when the large proportion of their workers become eligible for free coverage. The recession undoubtedly has boosted this process. But substituting public coverage for private coverage is also at work.
Take a look at a similar graph next year. I predict it will look much worse.