Small Firm Workers Pick Large Firm Benefits

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 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.

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.

SOURCE Office of Advocacy of the U.S. Small Business Administration

John McDowell of the Office of Advocacy of the U.S. Small Business
Administration, +1-202-205-6941, john.mcdowell@sba.gov