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Tuesday, August 31, 2004

Getting all the facts on the uninsured

[Kirk A. Johnson, Ph.D., "The Data on Poverty and Health Insurance You’re Not Reading," WebMemo #556, The Heritage Foundation, 27 August 2004.]

News reports on the recently-released Census data regarding the number of uninsured in the U.S. have largely taken the view that this is a huge and mounting problem. As The Heritage Foundation's Kirk Johnson points out, though, we may not be getting the full picture:

While most of the [Current Population Survey (CPS)]-based report focuses on the static issues of year-to-year health insurance and poverty rates, there is a small mention of another Census Bureau series of reports called the "Dynamics of Economic Wellbeing." These reports, based on data from the long-standing Survey of Income and Program Participation (SIPP), track actual individuals over time, as opposed to the CPS, which only provides snapshot information. For that reason, the CPS has been criticized for providing an incomplete picture of these social indicators.

By surveying people over time, SIPP provides a rich source of data and information for policymakers and public at-large. In the SIPP reports are some startling but seldom-reported findings:

- Spells of uninsurance are short-lived. The typical family that loses health insurance is uninsured for only 5.6 months on average.

- Very few people lack health insurance long-term. Only 3.3 percent of all Americans went without some kind of health insurance for four or more years. Additionally, only one in nine people were without health insurance for more than two years of the four-year study period.

- Health insurance coverage rates have risen over time. In 1996, some 8.8 percent were without health insurance for the entire year, a figure that dropped to 8.0 percent by 1999. Conversely, 78.2 percent of all Americans had health insurance for the entire year in 1996, which rose to 80.4 percent by 1999.

[T]he Census Bureau’s own statisticians argue that SIPP provides a better measure of health insurance coverage than CPS. In a recent research report on the differences between CPS and SIPP in this regard, Census Bureau statistician Shailesh Bhandari wrote, "Since the SIPP collects monthly information and allows us to see changes from month to month, SIPP may be closer to the truth. This implies that although designed to estimate the coverage at some point during a year, the CPS is underestimating it."


[Matthew Hisrich, "Greatest increase in uninsured found among wealthy," The Flint Hills Center, 10 May 2004.]

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