ACP-ASIM Online - Decision 2000 Campaign - Profile of the Low-Income Uninsured Who May Benefit from Tax Credits


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Profile of the Low-Income Uninsured Who May Benefit from Tax Credits

The ACP-ASIM proposal in support of refundable tax credits for individuals with household income between 100-150 percent of the poverty threshold would benefit: single adults between 18-64 years of age with annual income below $12,525; and married couples with income below $16,122.* These individuals are at the greatest risk of being uninsured because they are unlikely to qualify for Medicaid. In 1997, there were 7.3 million uninsured people (including adults and children) that fall within this 100-150% category. This is 17% of the total uninsured. ACP-ASIM proposal estimates that 3.9 million adult persons with incomes between 100-150% of poverty will participate in the tax credit proposal.

Job Status

In 1997, over 1 in 4 workers (28.8%) with annual income under $20,000 are uninsured (workers earning over $40,000/yr. are uninsured at a rate of 5%). On the whole, part-time workers are more likely to be uninsured than full-time workers; 24% are uninsured compared to 17%.

In 1997, almost 48% of all uninsured workers were either self-employed or working in private-sector firms with fewer than 25 employees. In large firms with more than 1,000 employees, 20% of those earning under $20,000 are uninsured (based on 1995 data).

Race

Of the 7.3 million uninsured with income between 100-150% of poverty, 3.2 million are white (44% of the total), 2.4 million are Hispanic (32%); and 1.3 million are African Americans (17%). Although whites comprise the largest number of the uninsured, there are higher percentages of uninsured among Hispanics and African Americans. Among individuals whose income is within 100-150% of the federal poverty level: 45.3% of Hispanics are uninsured; 33% of African Americans are uninsured; and 30.2% of whites are uninsured.

Gender And Age

In 1997, men aged 18-64 are more likely to be uninsured than women in the same age category. This difference is most striking among young adults. A Kaiser Family Foundation "Fact Sheet"-The Uninsured and Their Access to Health Care, states that in 1995, nearly half (46%) of men 18-44 with income less than 200% of the federal poverty level are uninsured compared to 27% of women in the same age group. This is due in part to Medicaid's eligibility categories that cover more women than men.**

Regional Variations

The proportion of the low income population (below 200% of the federal poverty level) that are uninsured varies by state from a low of 8% in Hawaii where employer-provided health insurance is mandated, to a high of 38% in Texas. In 18 states (most of which are in the south and west), over 25 percent of the population with incomes below $20,000 is uninsured. In general, southwest and south central states have higher levels of uninsured than other regions of the country. Compared to the percentage of uninsured nationally (18%), 20 percent or more of the population is uninsured in these states. In 1997, the percentage of uninsured is only slightly (1%) higher on average in Consolidated Metropolitan Statistical Areas (CMSAs) than the national percentage. But the variation among CMSAs can be significant. For example, the Houston-Galveston-Brazoria, TX CMSA had the highest uninsured rate at 28.2 percent, compared to the lowest (8.2 percent) in the Milwaukee-Racine, Wisconsin CMSA.***

Sources:

Kaiser Family Foundation. The Uninsured and Their Access to Health. Fact Sheet. July 1998.

Employee Benefit Research Institute. Sources of Health Insurance and Characteristics of the Uninsured: Analysis of the March 1998 Current Population Survey. Issue Brief.

US Census Bureau. Health Insurance Coverage: 1997.

The studies and information used for this fact sheet are based on household income, which contains a broader set of related and unrelated individuals. ACP-ASIM's proposal defines households using program eligibility rules (i.e. health insurance units).

*Poverty threshold is based on 1997 US Census Bureau, Current Population Survey for one and two persons without children. This fact sheet relies on data gathered in 1995-1997. Less current figures were included only when data from 1997 for the income level 100-150% were not available.

**Age and Gender data on persons with incomes up to 150% of poverty are not available. The data on persons with income up to 200% of poverty are suggestive of the demographic characteristics of those where income fall within 100-150% of poverty.

*** State-by-state data on the proportion of persons with incomes up to 150% of poverty are not available. The state-by-state data on those with incomes up to 200% of poverty are suggestive of the proportion of uninsured persons in each state that fall within the 100-150% of poverty range.