Fact Check: In the United States, 98% of larger employers offer health insurance as a benefit.

Fact Check: In the United States, 98% of larger employers offer health insurance as a benefit.

Published July 3, 2025
by TruthOrFake AI
βœ—
VERDICT
False

# Fact Check: "In the United States, 98% of larger employers offer health insurance as a benefit." ## What We Know The claim states that 98% of large...

Fact Check: "In the United States, 98% of larger employers offer health insurance as a benefit."

What We Know

The claim states that 98% of larger employers in the United States offer health insurance as a benefit. According to the Kaiser Family Foundation, nearly all large firms (specifically, 98% of firms with 200 or more workers) do indeed offer health benefits to at least some of their employees. However, this statistic pertains specifically to firms of a certain size and does not encompass all larger employers or the overall landscape of employer-sponsored health insurance.

In contrast, data from the Medical Expenditure Panel Survey indicates that about 86% of U.S. private-sector employees worked for establishments that offered employer-sponsored health insurance between 2020 and 2022. This percentage varies by state, with some states reporting as low as 70.5% and others as high as 97.5%.

Furthermore, a broader analysis of employer-sponsored health insurance reveals that while a significant number of larger firms offer health insurance, the rates drop considerably for smaller firms. For example, only 53% of firms with 3-199 employees offer health benefits, which highlights a disparity in coverage based on firm size (Kaiser Family Foundation).

Analysis

The claim that "98% of larger employers offer health insurance" is partially accurate but misleading when taken out of context. While it is true that 98% of large firms (200 or more employees) provide health insurance, this statistic does not reflect the entire employer landscape. The overall percentage of private-sector employees working for employers that offer health insurance is significantly lower at 86% (Census Bureau).

Moreover, the distinction between "larger employers" and "all employers" is critical. The majority of U.S. businesses are small firms, and the availability of health insurance benefits drops dramatically in these smaller establishments. The Kaiser Family Foundation's report emphasizes this disparity, indicating that smaller firms (with fewer than 200 employees) are much less likely to offer health benefits (Kaiser Family Foundation).

The reliability of the sources used to assess this claim is strong. The data from the Kaiser Family Foundation and the Medical Expenditure Panel Survey are well-regarded and frequently cited in health policy discussions. However, it is essential to recognize that the context of the statistics matters greatly in interpreting their implications.

Conclusion

Verdict: False

While it is accurate that 98% of larger employers (those with 200 or more employees) offer health insurance, the claim fails to represent the broader reality of employer-sponsored health insurance across all employer sizes. The overall percentage of private-sector employees working for employers that offer health insurance is only 86%, and this number is significantly lower for smaller firms. Thus, the claim is misleading and does not accurately reflect the landscape of health insurance benefits in the United States.

Sources

  1. Trends in Health Insurance at Private Employers, 2008-2022
  2. Research and policy to strengthen the employer‐sponsored health ...
  3. How Many U.S. Businesses Offer Health Insurance to Employees?
  4. Employee Benefits in the United States - March 2024
  5. KFF Report on Health Benefits Offer Rates

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