Many Former California Welfare Recipients Have Employer-Sponsored Health Coverage, Report Finds

Although health insurance provided to former California welfare recipients through Medi-Cal, the state's Medicaid program, "remains far from universal," many receive coverage though employer-sponsored health plans, according to a report released this month by the Medi-Cal Policy Institute. In the report, titled "Beyond Medi-Cal: Health Insurance Coverage Among Former Welfare Recipients," RAND researchers analyzed data from a California Health and Social Services Survey of 3,000 current and former state welfare recipients in six counties. The report found a "steady decline" in Medi-Cal coverage for former welfare recipients as time away from welfare increases and a rise in number who receive employer-sponsored health coverage as time away from welfare increases. According to the report, the two trends result in a "continually decreasing percentage of individuals who lack health insurance as time away from welfare increases." The report found that the percentage of uninsured former welfare recipients away from welfare for 12 or more months is about 5% lower than the percentage of those away from welfare for 6 to 11 months and 7% lower than the percentage of those who have most recently left welfare. In addition, the report found "substantial differences" in health coverage among racial groups. About 27% of non-Hispanic white former welfare recipients had Medi-Cal coverage -- compared to 36% of Hispanics and 48% of African Americans -- but 46% had employer-sponsored health coverage -- compared to 26% of Hispanics and 20% of African Americans, the report found. The report also examined the factors that affected the availability of employer-sponsored health insurance and the impact of health insurance on access to care for former welfare recipients. Researchers said that the results of the report "suggest a need for further program outreach" to former welfare recipients who qualify for but have not enrolled in Medi-Cal and "complementary strategies" to increase employer-sponsored health coverage (Gresenz/Klerman, "Beyond Medi-Cal: Health Insurance Coverage Among Former Welfare Recipients," August 2000). The report is available online. Note: You must have Adobe Acrobat Reader to view the report.