When the Economy Sputters...the Number of Uninsured (usually) Rises

As the nation's economy falters, Massachusetts may be better positioned than other states to avoid the predicted rise in the ranks of the uninsured. A study published by Health Affairs today says employer support for the state’s health coverage law remains strong and few companies are dropping coverage. The findings are based on a survey conducted last Spring well before recent economic turmoil that typically triggers less coverage and higher costs for those who retain the benefit. But the study’s author, Jon Gabel, says individual and employee requirements may undo that pattern in Massachusetts.

The fair share requirements and the individual mandate provides an incentive for many employers to continue offering coverage when economic conditions may suggest that under normal circumstances they would drop coverage.

But employer groups warn that if this is long term recession companies may have to cut coverage to stay in business.