Consequences of Bush Economics THE NUMBER OF AMERICANS WITHOUT HEALTH INSURANCE ROSE IN 2001 AND CONTINUED TO RISE IN 2002 Leighton Ku

Prevention indicate that the number of uninsured Americans rose in 2001 and in the first quarter of 2002. The main reason insurance coverage fell was a drop-off in employer-sponsored insurance for workers and their dependents. This reduction was triggered by rising unemployment levels and rising health insurance premiums, which made it more difficult for employers to offer insurance or for workers to afford it. The downturn in private coverage was partially offset by increased enrollment in Medicaid and the State Children’s Health Insurance Program (SCHIP). About two million more children and one million more adults would have been uninsured had it not been for the growth in these programs. Funding for the public programs is, however, threatened by budget shortfalls affecting most states, which administer these programs. Many states have cut their Medicaid programs and are planning further cutbacks. Increasing federal assistance to states and their Medicaid programs could help protect insurance coverage for low-income people during the current economic slowdown. Future SCHIP enrollment could drop sharply because of a shortage of federal funds, and Congress could take steps to bolster SCHIP funding. The number of uninsured Americans, which had fallen in 1999 and 2000, rose by about 1.4 million in 2001. New data and studies indicate the increase was due in large measure to the faltering economy, mounting health care costs, and the erosion of private health insurance coverage. The total number of uninsured Americans rose from 39.8 million in 2000 to 41.2 million in 2001, according to new findings from the Census Bureau. In addition, preliminary data from the National Health Interview Survey, which is administered by the Centers fo