Marylanders Educated, Prosperous, and Paying High Healthcare Premiums

dflurymw0aamnqrMaryland residents are very educated and fairly prosperous when compared to other states, according to a study by Washington-based national nonprofit Prosperity Now – but we have a ways to go in terms of business and employment equity, and are last on the list in terms of high employee shares for health insurance premiums.

Maryland ranked fourth in the nation for education, out of the 50 states and the District of Columbia. Almost 39 percent of adults aged 25 and older hold at least a four-year college degree, compared to 30.6 percent nationally. Nearly nine out of ten Maryland students entering high school in the 2011-12 school year graduated in four years – 87 percent. More than half of Maryland college students graduate with student loan debt, and 9.9 percent of Maryland borrowers entering repayment on their student loans in 2013 defaulted within three years.

Maryland ranks 17th on the “prosperity of its residents,” according to the nonprofit. Maryland ranked third for its low percentage of households with income below the federal poverty threshold (9.2 percent, compared to 13.8 percent nationwide). While 36.8 percent of households nationwide could not subsist at the poverty level for three months if they lost their major source of income (the “liquid asset poverty rate”), in Maryland, that number is less than 24 percent. One-fifth of Maryland jobs are in low-wage occupations. Maryland scored squarely in the middle for income volatility: 21.4 percent of Marylanders indicated that their incomes varied somewhat or a lot from month to month in the previous year, compared to 20.9 percent nationally.

Maryland ranked 23rd out of all states in the businesses and jobs category, but scored significantly poorly in business and employment equity categories. Our state ranked 43rd for its ratio of unemployment of its white, non-Hispanic labor force compared to its labor force of color. We ranked 43rd in small business ownership, 46th for business value by race, and 45th for business value by gender. (“Business value by race” is defined as “the ratio of the average business value, in terms of sales, receipts or revenue, of White, non-Hispanic-owned businesses to businesses owned by workers of color”; “business value by gender” is defined similarly as the “ratio of average business value, in terms of sales and receipts, of women-owned businesses to men-owned businesses.”)

Similar disparities exist in the healthcare category. Maryland ranked 17th for healthcare, with high rankings for percentage of non-elderly with health insurance, employer-provided insurance coverage, and few adults reporting poor or fair health status. However, Maryland actually ranked 51 out of 51 for high employee shares of premiums, or the “percentage of the average employee contribution to family premiums for employer-based health insurance.” The average employee contribution in Maryland is 35.4 percent, compared to 27.2 percent nationally. Maryland ranked 47th in the “uninsured by race” category: the uninsured rate is 3.2 times as high for people of color than the white, non-Hispanic population (compared to 2.1 times nationally).

Maryland ranked 37th out of all states for homeownership and housing. We ranked 25th for homeownership, but half of all renters are “cost burdened,” meaning they spend 30 percent or more of their income on rent and utilities – placing Maryland 39th in this category. Maryland ranked 43rd for delinquent mortgage loans, with 1.8 percent of loans with payments 90 or more days overdue.

Prosperity Now describes its scorecard:

The Prosperity Now Scorecard is a comprehensive resource featuring data on family financial health and policy recommendations to help put all U.S. households on a path to prosperity. The Scorecard equips advocates, policymakers and practitioners with national, state, county and city data to jump-start a conversation about solutions and policies that put households on stronger financial footing across five issue areas: Financial Assets & Income, Businesses & Jobs, Homeownership & Housing, Health Care and Education.

Useful Links

Prosperity Now’s Maryland data

Baltimore data (March 2016)

Herald-Mail Media coverage, with Washington County data