Office of Advocacy
    U.S. Small Business Administration

    NEWSRELEASE

    For Release: March 31, 2008
    Contact:     John McDowell, (202) 205-6941
    john.mcdowell@sba.gov
    SBA Number:     08-08 ADVO
    Press Kit

    Small Firm Workers Pick Large Firm Benefits

    Couples Use Health Coverage Of Large-Firm Employed Spouse

    WASHINGTON, D.C. – 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:

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

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

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

    Ø 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 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 economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.

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    The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit www.sba.gov/advo, or call (202) 205-6533.