Before 2001, 69% of New York workers received health insurance from their employers.
That year, those covered by employer health plans dropped to 58%. This puts city workers below the state average.
Sixty-five percent of workers nationwide obtain their health insurance from their employers. Seventy percent of New York companies offer health insurance; this has stayed steady. In 2009 only 60% of companies nationwide offered health insurance.
According to David Sandman, senior vice president of the New York State Health Foundation, “Job-based coverage is the backbone of the United States health-insurance system. It’s still the main way that New Yorkers and Americans get health insurance, but it is a platform that is eroding and is more fragile than it used to be.”
Between late 2009 thru early 2010 The University of Chicago did telephone interviews with 805 random private and public companies in New York. They found out that most of them feel offering health insurance “is the right thing to do.” Sixty-Six of them are having difficulties paying for it. A good majority of them plan to have the employee pay more next year.
In New York, employer-based health care coverage is about 10% higher than the national average. Monthly premiums are about $1,226 in New York, compared to $1,115 nationally. A state Insurance Department spokesperson said, “Over the past decade, large-group and small-group insurance in New York has increased about 12% to 14% annually. Increases could be less or more depending on a specific plan.”
With the uncontrollable health care cost premiums, which have been rising for many years, companies are refraining from hiring new employees. This is due in large to the cost of health care. With the rise in health care costs, one in five employers are avoiding hiring new employees, and one in four have frozen or cut salaries.