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Economic Boom Shrinks California's Health Insurance Gap; Residents Without Job-based Insurance Left Behind

Date: Februrary 8, 2001

Contact: Dan Page (email)
Phone: (310) 794-2265

A booming economy helped trim the number of Californians without health insurance in 1999, yet 22.4 percent of the state's nonelderly residents still lacked health coverage, according to data released today by the UCLA Center for Health Policy Research.

The number of uninsured Californians dipped to 6.8 million in 1999 from 7.3 million the previous year, according to a study published as a Policy Brief by the center. Growth in employment-based health insurance spurred the decline, as the proportion of nonelderly Californians who received job-based insurance rose to 60.6 percent in 1999 from 58.3 percent. Researchers compiled their data from the March 2000 Current Population Survey.

"It's becoming increasingly clear that the expanding economy can not adequately break down barriers to health insurance coverage faced by millions of uninsured working Californians," said E. Richard Brown, director of the center and a professor at the UCLA School of Public Health. "Federal matching funds are available to help the state expand its Medi-Cal and Healthy Families coverage to include more uninsured residents, particularly parents of eligible children. It makes good fiscal and policy sense to take maximum advantage of this opportunity to expand access to health insurance coverage."

The study was funded by a by a grant from The California Wellness Foundation as part of the foundation's Work and Health Initiative. Among other findings:
  • Medi-Cal (California's Medicaid program) and the new Healthy Families Program (California's version of the State Children's Health Insurance Program) covered 10.5 percent of nonelderly Californians in 1999, down from 11 percent in 1998 — a slower rate of decline than in recent years.
  • An estimated 685,000 nonelderly adults are uninsured but eligible for Medi-Cal coverage. An additional 3.1 million uninsured adults are citizens or legal immigrants who do not qualify.
  • In 2000, Gov. Gray Davis and the state Legislature agreed to seek a federal waiver to extend the Healthy Families Program to some uninsured parents whose family incomes or assets exceed the eligibility limit for Medi-Cal. Davis has proposed capping parents' income eligibilty at 200 percent of the federal poverty level, well below the level of their children. At that income level, the proposed expansion could benefit up to 412,000 uninsured parents but still exclude 835,000 uninsured parents who are citizens or legal immigrants.
  • If the income eligibility level were set at 250 percent of the poverty level, the same as for their children, 518,000 uninsured parents would be eligible for Healthy Families, reducing the number without coverage options to 729,000.
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