Self-Employed More Likely To Be Uninsured Than Corporate Counterparts

More than three in five uninsured workers were either sole proprietors or working in small businesses in 2006, according to a recent study. The Employee Benefit Research Institute (EBRI) recently released its October 2007 Issue Brief which explores socioeconomic and demographic factors of the uninsured population. In addition nearly two in three micro-business workers were uninsured, compared with 13.0 percent of workers in businesses with 1,000 or more employees.

The survey findings included the following:

• Workers in the field of agriculture, forestry, fishing, mining, and construction were the least likely to be insured.

• Men are more likely to receive employer-based benefits; however, women did outpace men in the 55–64 year-old age group.

• Employees who worked less than 30 hours per week and seasonal workers were less likely to be insured.

• Though many were employed, those with a lower household income were more likely to be uninsured.

• Individuals of Hispanic origin were more likely to be uninsured and less ikely to receive employer benefits.

According to the study author, the increase in health care costs is a function of the relatively stable unemployment rate, which was 4.6 percent in 2006.

“[As] long as the economy is strong enough and the labor market tight enough to keep people off of public assistance programs, public programs are not expected to expand in order to offset the erosion of employment-based health benefits, which means the relative size of the uninsured population will continue to increase.”

To read the entire survey, including other variables that were studied, visit http://www.ebri.org/publications/ib/index.cfm?fa=ibDisp&content_id=3850.

For information on what the NASE is doing to make health care costs more affordable for micro-businesses, visit http://advocacy.NASE.org/.