February 25th, 2009

Reports Reuters:

More Americans will lose their health insurance as the economy weakens, health care becomes more expensive and fewer employers offer coverage, the U.S. Institute of Medicine said in a report on Tuesday.

The institute, an independent research organization that advises U.S. policymakers, said safety-net services such as charity care and hospital emergency rooms cannot be relied upon to meet the needs of people without insurance.

…

Employer-provided insurance has been the cornerstone of private health coverage in the United States, with an estimated 160 million Americans getting their insurance this way.

But surging health care costs are making it increasingly tough for employers to offer health insurance coverage to their workers, according to the report. And many employers have replaced permanent, full-time jobs with contract, part-time and temporary jobs without health benefits, the panel said.

Even when employers do offer health insurance, more employees are declining it because they cannot afford the premiums, the panel said. Between 1999 and 2008, the average annual employee premium contribution for family coverage rose from $1,543 to $3,354, the panel said.

Find out more from Reuters.