ALBANY — The proportion of New Yorkers with health insurance provided by their employers has plummeted, according to a study. At the same time, government-subsidized care is taking on a record load, slowing the state’s economic recovery and likely leaving more families uncovered for at least months.
The rising cost of Medicaid-paid health care is a major driver of state government’s rising deficits, which are forcing cuts in education and other services and prompting layoffs that further slow the economy.
Meanwhile, the private sector is sagging under the cost of providing health care, with 66 percent of companies saying they are struggling a great deal or somewhat to maintain coverage for employees, reports the New York State Health Foundation.
One in 5 companies avoided hiring because of health-care costs, according to the survey, and 1 in 4 companies either reduced or froze wages to pay for health care.
The report said just 58 percent of New Yorkers are now covered by employer-sponsored health care, down from 69 percent in 2001.