The Health Insurance Act of 2003 (SB2): Updated Findings from the 2002 California Employer Health Benefits Survey

Transcription

1 -And- The Health Insurance Act of 2003 (SB2): Updated Findings from the 2002 California Employer Health Benefits Survey October 2003

2 Introduction and Methods On October 5, 2003, Governor Gray Davis signed into law the California Health Insurance Act of 2003 (also referred to as SB2). This law would require employers with 200 or more workers to either pay into a fund that will provide coverage to their workers or to pay for 80% of the premium costs for their workers and dependents (effective January 1, 2006). Medium-sized employers (between 50 and 199 workers) would be required either to pay into the fund or pay for 80% of the premium costs for their employees by January 1, This chartpack updates an earlier analysis of the 2002 Kaiser/HRET California Employer Health Benefits Survey to provide data in employment categories that are more closely aligned with those of the California Health Insurance Act of For the purposes of reporting the data, firms were aggregated into four firm sizes: 3-19 workers, workers, workers, and 200 or more workers. Analyses were also done by small (20-199) and large firms (200 or more workers). The 2002 California Employer Health Benefits Survey is a joint product of the Kaiser Family Foundation and Health Research and Educational Trust. The survey was designed and analyzed by researchers at the Kaiser Family Foundation and HRET, and administered by National Research LLC (NR). The findings are based on a random sample of 861 interviews with employee benefit managers in private firms in California. NR conducted interviews from May to August The sample was drawn from the Dun & Bradstreet list of private employers with three or more workers. The margin of error for responses among all employers is +/- 3.5%. Some exhibits do not sum to 100% due to rounding effects. The original report (pub #6070) is available at The survey is based on a national employer survey conducted annually by the Kaiser Family Foundation and HRET. The U.S. results for 2003 (pub# 3369), and are available on the Foundation s web site at or by calling the Foundation s Publications Request Line at Prior to 1999, the national survey was conducted by KPMG Peat Marwick LLP. A similar employer survey was also conducted in 1999 in California, in conjunction with the Center for Health and Public Policy Studies at the University of California, Berkeley. The Kaiser Family Foundation is an independent, national health philanthropy dedicated to providing information and analysis on health issues to policymakers, the media, and the general public. The Foundation is not associated with Kaiser Permanente or Kaiser Industries. The Health Research and Educational Trust (HRET) is a private, not-for-profit organization involved in research, education, and demonstration programs addressing health management and policy issues. Founded in 1944, HRET collaborates with health care, government, academic, business, and community organizations across the United States to conduct research and disseminate findings that help shape the future of health care.

3 Availability of Coverage California Employer Health Benefits Survey 2001

4 Chart #1 Percentage of All Firms Offering Health Benefits, California % 80% 60% 48% 60%* 66% 65% 40% 20% 0% * Estimate is statistically different from the previous year: Sources: Kaiser/HRET California Employer Health Benefits Survey: 2000, 2001, 2002; Kaiser/HRET/UC Berkeley 1999 California Employer Survey

5 Chart #2 Percentage of California Employers Offering Coverage, by Firm Size, California % 94% 99% 84% 80% 60% 65% 61% 40% 20% 0% All Firm Sizes or More Sources: Kaiser/HRET 2002 California Employer Health Benefits Survey.

6 Chart #3 Percentage of Employed in Firms That Offer Health Coverage to Part-Time Employees, by Firm Size, California % 90% 80% 70% 60% 60% 50% 40% 30% 32% 20% 10% 0% All Small Firms ( ) All Large Firms (200 or More ) Sources: Kaiser/HRET 2002 California Employer Health Benefits Survey.

7 Chart #4 Eligibility, Take-Up Rates, and Coverage in Firms Offering Health Benefits, California % 83% 87% 75% 72% 50% 25% 0% In Firms That Offer Coverage, % of Employees Who are Eligible % of Eligible Who Accept Coverage (Take-Up) In Firms That Offer Coverage, % of Covered Source: Kaiser/HRET 2002 California Employer Health Benefits Survey.

8 Chart #5 Eligibility, Take-Up Rates, and Coverage in Firms Offering Health Benefits, by Firm Size, California % 75% 88% 85% 87% 80% 81% 79% 90% 88% 70% 67% 79% 70% % 200 or More 25% 0% In Firms That Offer Coverage, % of Employees Who are Eligible % of Eligible Who Accept Coverage (Take-Up) In Firms That Offer Coverage, % of Covered Source: Kaiser/HRET 2002 California Employer Health Benefits Survey.

9 Chart #6 Most Common Reasons Cited by Firms as to Why Decline Coverage, California Have Coverage Elsewhere 59% 66% Can't Afford Share of Premium Don't Want or Feel They Need Insurance 1% 2% 10% 21% Other 1% 15% Don't Know 13% 14% 0% 10% 20% 30% 40% 50% 60% 70% Note: Statistical Testing illustrates that there is no statistical variation by size Source: Kaiser/HRET California Employer Health Benefits Survey: 2001, 2002.

10 Cost of Health Insurance California Employer Health Benefits Survey 2001

11 Chart #7 Percentage Change in Premiums, by Firm Size, California 2001 to 2002 All Firms 13.0% 3 to % 20 to % 50 to % 200 or More 12.2% Source: Kaiser/HRET 2002 California Employer Health Benefits Survey. 0% 5% 10% 15% 20%

12 Chart #8 Average Annual Worker and Employer Contributions, California 2001 and 2002 Worker Contribution 2002 $342 $2,503 $2,845 Employer Contribution Single 2001 $253 $2,104 $2, $1,806 $5,666 $7,471 Family 2001 $1,369 $4,897 $6, Note: Data in the 2001 California survey were re-weighted to adjust for minor changes in the sample. As a result, estimates of worker and employer contributions have changed slightly. Last year we reported that single premiums in CA were $2,359. share of the premium was $250, and employers contributed $2,109. Family premiums cost $6,248. Worker s share of the family premium was $1,364 and employers contributed $4,884. The reported data and revised data for 2001 are not significantly different. Sources: Kaiser/HRET California Employer Health Benefits Survey: 2001, 2002

13 Chart #9 Distribution of Employer Contribution Levels, by Firm Size, California 2002 Single All Small Firms ( ) 6% 14% 80% All Large Firms (200 or More ) 5% 16% 79% Family All Small Firms ( ) 27% 37% 36% All Large Firms (200 or More ) 10% 40% 51% 0% 25% 50% 75% 100% Less Than or Equal to 50% Greater Than 50%, Less Than 80% Greater Than or Equal To 80% Sources: Kaiser/HRET 2002 California Employer Health Benefits Survey.

14 Chart #10 Percentage of Total Premium Paid by and Employers for Single Coverage, California 2002 Employer Share Worker Share 100% 13% 12% 10% 13% 13% 75% 50% 87% 88% 90% 87% 87% 25% 0% All Firms Sizes 3 to to to or More Source: Kaiser/HRET 2002 California Employer Health Benefits Survey.

15 Chart #11 Percentage of Total Premium Paid by and Employers for Family Coverage, California 2002 Employer Share Worker Share 100% 75% 26% 26% 31% 36% 21% 50% 74% 74% 69% 64% 79% 25% 0% All Firms Sizes 3 to to to or More Source: Kaiser/HRET 2002 California Employer Health Benefits Survey.

16 The Henry J. Kaiser Family Foundation 2400 Sand Hill Road Menlo Park, CA Phone: Fax: Washington Office: 1330 G Street NW Washington, DC Phone: Fax: Additional free copies of this publication (#3376) are available on the Kaiser Family Foundation s web site at