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FEBRUARY 18, 1999   9:00 AM
FOR IMMEDIATE RELEASE
CONTACT: Commonwealth Fund
Mary Mahon, 212-606-3853 or Bill Byrne, 212-606-3826
e-mail: mm@cmwf.org
 
Study Shows Disparities in Employer-Based Coverage Persist Between Minority Workers, Others
 
WASHINGTON - February 18 - Minority workers holding jobs comparable to those of whites have a disproportionately lower rate of employer-based health insurance, according to a new study sponsored by The Commonwealth Fund, "Employer-Sponsored Health Insurance: Implications for Minority Workers," by Allyson Hall and Karen Scott Collins of The Commonwealth Fund and Sherry Glied of Columbia University.

The study reveals that even after controlling for such variables as sociodemographic factors, blacks and especially Hispanics consistently lag behind whites in employer-provided insurance. Sixty-nine percent of whites are insured through their employers, compared with only 52 percent of blacks and 44 percent of Hispanics.

"Minority groups have lower rates of health care coverage because they are more likely to work in industries that do not provide coverage, hold part-time jobs, and have lower incomes. But those trends account for only part of the story," said Karen Davis, president of The Commonwealth Fund. "Other factors should be investigated, such as increasingly unaffordable premiums facing workers when employers do offer coverage."

Individuals who are employed full-time, work for large employers, belong to unions, and work in the manufacturing and government sectors are more likely to have health insurance compared with other workers. Even within these categories, however, minority Americans appear to be at a disadvantage: 37 percent of Hispanic full-time workers are uninsured, compared with 20 percent who are black, and 12 percent who are white. In mid-size firms with 100 to 1,000 workers, 84 percent of whites have coverage, compared with 68 percent of blacks and 61 percent of Hispanics. In small firms with fewer than 100 workers, 63 percent of whites have employer-based coverage, compared with 47 percent of blacks and 38 percent of Hispanics.

Similar disparities exist when examining different industries: within the manufacturing sector, for example, 85 percent of whites, 71 percent of blacks, and 60 percent of Hispanics have employer-based health insurance. Part-time minority workers also fare worse than their white colleagues, with less than half receiving employer-based insurance compared with nearly two-thirds of whites. Minority workers are less likely to be covered through their employer regardless of wage level. Among workers who earn less than $7 an hour, 56 percent of whites have employer-based coverage compared with 47 percent of blacks and 35 percent of Hispanics. For workers who earn more than $15 an hour, 79 percent of whites have employer-sponsored coverage, compared with 67 percent of blacks and 54 percent of Hispanics.

"A variety of additional barriers may account for the difference in health care coverage rates between whites and minorities," said Allyson Hall, program officer at the Fund. "Certain groups may decline health care coverage not only because of financial concerns, but also because of differing perceptions regarding the propensity to become ill and the overall need for health care coverage. Further research can inform health care reform efforts to address cultural as well as financial barriers to insuring workers."

The authors offer potential solutions to the problem of lack of coverage, including broadened eligibility criteria and outreach strategies that target low-income working families. "It has been well-documented that lack of health coverage is linked to lack of access to health care," said Karen Scott Collins, M.D., assistant vice president and director of minority health programs at the Fund. "The key to addressing inequities in health outcomes for minorities and reducing preventable mortality and morbidity is improving health insurance coverage."
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Methodology: Employer-Sponsored Health Insurance: Implications for Minority Workers is based on analysis of data from the 1997 March supplement to the Current Population Survey, also known as the Annual Demographic Survey. The March supplement provides detailed information on income and work experience from surveys of persons 15 years and older in approximately 62,500 households in the United States.
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The Commonwealth Fund is a private foundation supporting independent research on health and social issues.
 

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