Private insurance, as a percentage of total population, dropped to 67% in 2008, from 70% in 1998 and has been steadily declining for the last five years. Employment-based coverage fell from 62% to 58% during the same period. Moreover, data from the Centers for Disease Control and Prevention, National Health Interview Survey shows private coverage may have reached the lowest level in 50 years.

While it's understandable that considerable attention has been given to the plight of the 46.3 million uninsured Americans, Mark Farrah Associates (MFA) reports the decline in private health coverage may be more problematic for the healthcare industry. Recent economic factors are impacting health insurance coverage with 2008 showing the first actual declines in private insurance coverage year-over-year. Private coverage in 2008 dropped by 999,000 people nationwide, with employment-based coverage falling 1.1 million and direct purchase coverage increasing by 104,000.

During the ten years between 1998 and 2008, the percentage of uninsured Americans improved slightly, declining from 16% to 15%, the result of more people being covered by state Medicaid programs. As the debate over health care and health insurance reform continues pundits should support private health insurers to minimize the drain of government-sponsored programs.

In the latest Healthcare Business Strategy report, MFA analyzed the health insurance coverage data from the U.S. Census Bureau's Current Population Survey and data from the Centers for Disease Control and Prevention, National Health Interview Survey. MFA includes state and national census data in its Health Coverage Portal tool to facilitate an understanding of the total insurance picture within specific markets.

To read the full text of "Private Health Insurance Declines" visit the Healthcare Business Strategy library on Mark Farrah Associates' website www.markfarrah.com.

About Mark Farrah Associates (MFA)

MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include Medicare Business Onlineâ„¢, Medicare Benefits Analyzerâ„¢, the Health Coverage Portalâ„¢, Health Insurer Insightsâ„¢ and Health Plans USA.