Over one million of New York City's independent workers
need help with health insurance costs

NEW YORK CITY, March 5, 2003 - Working Today presented its survey findings to the City Council today, on behalf of New York City's estimated 1.3 million independent workers. These findings demonstrate that unless one earns $100,000/year or more, one cannot afford most health insurance plans on the individual market without assistance. The briefing was co-hosted by New York City Councilmember Christine Quinn, chairperson of the New York City Council Health Committee, and Councilmember Bill DeBlasio.

In the first survey of its kind, Working Today identified a significant gap in health insurance affordability for independent workers, a group that includes freelancers, temps, contingent workers, day laborers, contract workers, part-time workers, and others not tied to a full-time employer. Most independent workers, representing more than 30% of New York's workforce, do not receive health insurance benefits from their employer.

Research shows that individuals can afford to pay up to 5% of their income on health insurance. Independent workers affirmed that they are willing to pay up to 5%; however, for the majority of respondents, the current average premium is almost 15% of their average income. With the current average premium of $442 per month, these workers would need to earn over $100,000 to afford health insurance. According to the survey, over 85% of independent workers currently earn less than $100,000. The largest number of respondents earns between $21,000 and $50,000 per year- too much to qualify for state programs.

"Most independent workers are faced with a difficult choice-either paying onerous premiums or forgoing health insurance altogether. There's something wrong with our system when working New Yorkers cannot afford health insurance, effectively creating a new kind of middle class poverty," says Sara Horowitz, executive director of Working Today.

Survey Findings:

Working Today received over 800 responses to a recent web-based survey, providing a snapshot of independent workers in New York City:
* New Yorkers must earn over $100,000 a year to afford an average HMO plan on the individual market.
* The majority of respondents earns between $21,000 and $50,000 and could afford premiums at $88 to $208 per month, respectively; the average HMO premium for an individual in Manhattan is $442 per month.
* The study finds that independent workers want any kind of help to lower their costs, regardless of what form it comes in-voucher, tax credit, or single-payer system.

A recent study by the Commonwealth Fund found that an individual can afford up to 5% of their income on health insurance.
* 75% of independent workers affirmed they would be willing to pay 5% of their salaries on health insurance, yet 68% of respondents still felt they would need help to pay that amount.

Conclusion:

Independent Workers need help to afford health insurance and are interested in any solution that will lower their costs.

Excerpts from the New York City Council Briefing:

New York City Council Member Bill DeBlasio
We in the City Council have put a lot of time into the questions of ensuring that all New Yorkers have access to the protections and the benefits they need. I think it's fair to say that throughout the council there is a belief this is not only the humane and compassionate thing, it's also the smart thing to do in terms of policy and economics. It ensures that families and individuals can lead safer and more stable lives and ultimately they will not be in a position of financial distress or will require deeper support from the City government and other governments.

There are, as we have learned, certainly since the beginning of the 90s, many other types of people in this city who lack the opportunity to get affordable health insurance. I want to thank Working Today for, over the last few years, creatively opening the doors for those who are self employed, which is, I think, truly a growing part of our city. To make sure that there is a way that they can reach affordable health insurance as well and I think it is one of those incredible gaps that someone had to fill and I commend Sara and all her colleagues for having the foresight to do that.

New York City Council Member Christine Quinn, chairperson of the New York City Council Health Committee
First, I just want to thank Sara and Working Today for offering to do this briefing for us. The council, for the past couple of years, has been lucky enough to be able to help Working Today financially, but we hope that this briefing is yet another example of the growing relationship between the Council and Working Today.

I think Bill truly summed everything up, I just want to add that the struggles before us, as you as members of Working Today know better than any of us, the struggles to make sure that people are self-sufficient, that they have insurance, that they have the services they need, that basically they are keeping their jobs in this economy and the times that we are in are very real and uphill battles and struggles. And as Bill said, we are going to try to do everything we can on a city level to make sure that Medicaid, Family Health Plus and Child Health Plus continue. The overall situation as it relates to getting people health care to stay well or get better is very dire in this city. And certainly, learning more about Working Today, the role you play in that. Seeing these health facts is just stunning, I mean $100K to make sure you have health insurance, that is just baffling when you think about statistics what the average income of most New Yorkers is, which is nowhere near $100K. Thank you all for being here, thank you so much for the work you do and we look forward to learning more and as you say having an even closer working relationship on all of these struggles.