The number of Americans without health insurance fell in 2011, for the first time since coverage began growing less common in 2007.
This was due to the legal change allowing young adults up to the age of 26 to remain on their parents health insurance, which contributed to allowing about 540,000 more in that age group to stay covered, according to the Census Bureau. The total number of uninsured reportedly dropped from 49.9 million in 2010 to about 48.6 million last year, which the bureau noted was the largest drop since 1999.
Among those aged 19 to 25, the percentage of uninsured Americans decreased more than 2 percent to 27.7 percent of the population. Some analysts indicated that results of this magnitude were not expected so quickly, pointing out that the limited job prospects many younger adults face may have made this provision more important than expected, Bloomberg reports.
"The number of people who have private insurance is stable and that’s really good news obviously, and we’re working very hard to help employers make that possible," said Karen Ignagni, president and CEO of America’s Health Insurance Plans, in an interview with Bloomberg.
Results feeding health reform debate
Advocates of health reform and the Patient Protection and Affordable Care Act (PPACA) say that this is evidence the law is having the desired effect. Several important provisions have yet to be implemented, but they say this demonstrates the benefits the legislation will have for Americans. The Census Bureau reported that the percentage of Americans with stable coverage in 2011 was about 63.9, with no significant difference from the prior year. That would make it the first year the percentage has not decreased in a decade.
Supporters of the PPACA have said that it will make coverage cheaper by reducing the number of uninsured, allowing coverage providers to spread their risk out among more customers and thus remain profitable. Whether or not that will work is something analysts have offered varying opinions on.
With much uncertainty remaining, employee benefit consultants may be able to help organizations assess the situation as it develops and adapt accordingly. That might involve considering the benefits of different health plan types, evaluating the potential of shopping through a state insurance exchange and other possibilities.
