The problems faced by families working in this recession filled and jobless environment has been amply documented in terms of wages, number of jobs available and the average income of families. These problems are further augmented by loss of creditable coverage from the employers. This has been the main topic of discussion for families facing this recession.
Several reports have clearly documented the loss of coverage from the employer since the year 2000, emphasizing the characteristics of those families loosing the coverage.
Although, there has been an increase in unemployment and labor market has trimmed down over the period, it is difficult to explain the reason for decline in coverage provided by the employer on health related issues.
On the other hand, people who are covered by the employer have experienced a drop in the amount of coverage from 59% to 57%, a drop of almost 3 percent. This declining trend may be due to the following: due to crisis in labor market the bargaining power of worker has reduced considerably, moreover, the health care costs has increased considerably and the employers are not willing to provide coverage for the increased cost.
On close analysis of recent data, it has been shown that there is widespread loss of health care services due to loss of coverage for medical expenses. Predictably, it is not just the ones with low income and education faced with this problem, but families with higher income and educational qualification were not left out either.
The first and most prominent groups to loose employer based coverage are the children of employees. However, children from majority of low income families are covered under insurance coverage provided by state or federal government.