EMBARGOED UNTIL 10 A.M. EDT, SEPTEMBER 29, 1997 (MONDAY) Public Information Office CB97-162 301-457-3030/301-457-3670 (fax) 301-457-4067 (TDD) e-mail: pio@census.gov Income, Poverty and Health Insurance 301-763-8576 Income Improves, Poverty Levels Stabilize, Health Insurance Coverage Slips, Census Bureau Reports Median household income increased in real terms between 1995 and 1996 for the second consecutive year, while the poverty rate and the number of people living in poverty remained statistically unchanged and the number of uninsured Americans, particularly children, rose, according to three reports released today by the Commerce Department's Census Bureau. The reports, "Money Income in the United States: 1996;" "Poverty in the United States: 1996;" and "Health Insurance Coverage: 1996," also include data for states. Both the income and poverty reports have additional data on the valuation of noncash benefits. Daniel Weinberg, chief of the Census Bureau's Housing and Household Economic Statistics Division, said the number of poor Americans in 1996 totaled 36.5 million, representing 13.7 percent of the nation's total population. Weinberg said, neither figure was significantly different from the previous year's estimate. In 1996, the average poverty threshold for a family of four was $16,036. "During this same period," Weinberg said, "the real median income of households rose by 1.2 percent, increasing from $35,082 to $35,492. In addition, this was the third consecutive year in which there was no year-to-year change in overall income inequality." On the health-care front, the number of uninsured children under 18 grew to 10.6 million (14.8 percent) in 1996; both the number and percentage were statistically higher than the 1995 figures of 9.8 million and 13.8 percent, respectively. Overall, an estimated 41.7 million, or 15.6 percent, of Americans had no health insurance during all of 1996. This number was up 1.1 million from the previous year, but the percentage was not statistically different. Almost no group of people showed changes in its poverty rate except for the following: the rate declined significantly between 1995 and 1996 for persons living inside central cities (from 20.6 percent to 19.6 percent) and for male unrelated individuals (18.0 percent to 17.0 percent), while it increased for persons aged 60 to 64 (10.2 to 11.5 percent). Between 1995 and 1996, there were no significant changes in poverty rates or numbers of poor among Whites, African Americans, Asians and Pacific Islanders or persons of Hispanic origin (who may be of any race). The real median incomes of several types of households have returned to or exceeded their pre-recessionary 1989 levels. For example, the median income of married-couple households surpassed their 1989 level by 2.2 percent. Households in the Midwest and South, African American households, family households maintained by a woman with no husband present and households maintained by persons 55 to 64 years old all had incomes in 1996 comparable to their 1989 incomes (in 1996 dollars). It was the second consecutive year that households inside metropolitan areas experienced an increase in real median income. Before 1995, the income of these households had not increased since 1989. For households inside central cities, it was the first annual increase in real median household income since 1988. The female-to-male earnings ratio reached a new high in 1996 for persons working full time and year-round. The real median earnings for such women rose 2.4 percent to $23,710, which represented about 74 percent of the median for such men ($32,144). The last time men experienced an annual increase in median earnings was in 1991. In fact, between 1993 and 1996, men's earnings declined by 2.6 percent. In 1996, more than one-half (53.1 percent) of the nation's 142.9 million workers had employment-based health insurance policies in their own name; this estimate did not reflect the fact that many workers are covered by an employment-based plan through another family member. Other highlights: Poverty - Based on comparisons of two-year moving averages (1994-95 and 1995-96), the poverty rate dropped in five states (Indiana, Louisiana, Michigan, Missouri and Texas) and increased in three states (Arizona, Montana and Vermont). - Using three-year averages (1994 to 1996), state poverty rates ranged from 6.5 percent in New Hampshire to 24.0 percent in New Mexico. - Before 1994, the South had the highest regional poverty rate. Since that year the West has experienced a poverty rate not significantly different from that of the South 15.4 percent for the West and 15.1 percent for the South in 1996. - Neither the overall poverty rate for all children (20.5 percent), nor that for those aged 65 and over (10.8 percent), were statistically different between 1995 and 1996. - In 1996, 14.4 million people had incomes of less than half of their poverty threshold, up from 13.9 million in 1995. - Neither the number of poor nor the poverty rate for families showed significant change between 1995 and 1996; this was true regardless of family type or race and ethnicity. - In addition to the official income and poverty data released today, the Census Bureau also released income and poverty estimates based on 17 other definitions of income. Income - Based on comparisons of two-year moving averages (1994-95 and 1995-96), real median household income increased significantly for nine states (Alaska, Illinois, Indiana, Kentucky, Minnesota, New York, North Carolina, Rhode Island and South Carolina) and decreased for three states (New Mexico, Vermont and Wyoming). - Using three-year averages (1994 to 1996), the median household income for Alaska ($50,000) was higher than that of the remaining 49 states and the District of Columbia. - The South was the only region to experience a significant year-to-year change in real median household income between 1995 and 1996. Real median household income increased there from $31,856 in 1995 to $32,422 in 1996. By comparison, the median household income in 1996 was $37,406 in the Northeast, $37,125 in the West and $36,579 in the Midwest. (The differences between the median household incomes of the Northeast, Midwest and West were not statistically significant.) - This is the third consecutive year that family households have experienced an increase in real median income and the second consecutive year for nonfamily households. In addition, this was the third consecutive year that married-couple households experienced an increase in median income. - Households maintained by persons of Hispanic origin experienced a 5.8 percent increase in real median household income (to $24,906) offsetting the drop observed in 1995. The percentage changes in household income of White ($37,161), African American ($23,482) and Asian and Pacific Islander households ($43,276) were not statistically different from 1995. - Real per capita income increased significantly between 1995 and 1996, for Whites (1.8 percent to $19,181), African Americans (5.2 percent to $11,899) and Hispanics (4.9 percent to $10,048). The 1996 per capita income of Asians and Pacific Islanders ($17,921) was statistically unchanged. (The differences between the 1995-1996 percentage changes in per capita income among the race/ethnic origin groups were not statistically significant. The differences between the per capita incomes of Whites and of Asians and Pacific Islanders, and between the total population and Asians and Pacific Islanders, were also not statistically significant.) Health Insurance - Based on comparisons of two-year moving averages (1994-95 and 1995-96), higher health insurance coverage rates were recorded for Alabama and Michigan. Meanwhile, coverage rates fell in six states: Arizona, Arkansas, Colorado, New Jersey, North Carolina and Tennessee. - Using three-year averages between 1994 and 1996, the rates for the uninsured ranged from 8.2 percent in Wisconsin to 24.3 percent in Texas. - In 1996, the percentage of persons without health insurance by income ranged from 7.6 percent (among those in households with incomes of $75,000 or more) to 24.3 percent (among those in households with incomes less than $25,000). - In 1996, most people (70.2 percent) were covered by a private insurance plan; 25.9 percent had government coverage, i.e. Medicare (13.2 percent), Medicaid (11.8 percent), and military health care (3.3 percent). Many people had coverage by more than one plan during the year. - About 30.8 percent of the nation's poor (11.3 million) had no health insurance of any kind in 1996. - Among the various race and ethnic groups, persons of Hispanic origin were the most likely to be without coverage throughout 1996. The data are from the March 1997 Current Population Survey. As in all surveys, the data are subject to sampling variability and other sources of error.-X-The Census Bureau--pre-eminent collector and provider of timely, relevant, and quality data about the people and economy of the United States. In over 100 surveys annually and 20 censuses a decade, evolving from the first census in 1790, the Census Bureau provides official information about America's people, businesses, industries and institutions.
