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Small Firm Workers Pick Large Firm Benefits
Date:3/31/2008

Couples Use Health Coverage Of Large-Firm Employed Spouse

WASHINGTON, March 31 /PRNewswire-USNewswire/ -- Couples tend to use the health care coverage of the large-firm employed spouse. That is a central finding of a study released today by the Office of Advocacy of the U.S. Small Business Administration. The study also shows that children are more likely to have health care coverage if a large firm employs one or both parents.

"This report uncovers new information about an area of health care coverage that has been little examined in the past," said Dr. Jules Lichtenstein, an economist for the Office of Advocacy. "It points out the danger of only looking at single workers to determine coverage. Many times workers have other options. The issue is quite complex, as noted in this report."

Written by Eric Seiber and Curtis Florence with funding from the Office of Advocacy, Changes in Family Health Insurance Coverage for Small and Large Firm Workers and Dependents: Evidence from 1995 to 2005 analyzed data from the Census Bureau's Annual Demographic Survey of the Current Population Survey.

The report finds:

-- Small firm workers married to large firm workers are more likely to be covered as a dependent by the large-firm employed spouse.

-- Large firm employees who lose health care coverage do not necessarily shift coverage to the small-firm employed spouse.

-- Children are more likely to have dependent coverage if a large firm employs one or both parents.

-- Children who lose large firm supplied health insurance do not necessarily shift coverage to the small-firm employed spouse.

For more information and a complete copy of the report, visit the Office of Advocacy website at http://www.sba.gov/advo.

The Office of Advocacy, the "small business watchdog" of the federal government, examines the role and status of small business in the
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SOURCE Office of Advocacy of the U.S. Small BusinessAdministration
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