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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

The good news and the bad news

By Megan McArdle
Aug 28 2007, 4:33 PM ET Comment

Peoples' incomes improved markedly in 2006; the poverty rate dropped, and household income marched upwards.

On the down side, the percentage of Americans with health insurance dropped rather precipitously, from 84.7% to 84.2%. What happened?

Well, the numbers do tend to jump arund, especially with the business cycle. But we're in the very late phases of an expansion, if not a recession; why should insurance coverage still be falling? Forget the fluffy AP stories; let's go to the tape.

The percentage of Americans covered by private insurance has been falling for a while, now. That's not some grand conspiracy of business owners. In part it's due to companies dropping people, but a sizeable chunk of the change is simply due to programmes like S-Chip, which encourage families to drop their coverage; and an ageing population transitioning into Medicare.

The public sector dropped pretty sharply last year, but not nearly as steeply as the government. After rising steadily since 1999, the percentage of people with government coverage dropped by 30 basis points. Out of a total increase in population of roughly 3 million, the private sector, which usually insures about 800,000 new patients a year, only insured a little over 500,000 new patients last year. That's a big drop. Meanwhile, the government, which generally insures a million or more new patients last year, this year took on . . . about 53,000.

The big slowdowns were in military healthcare, and in Medicaid. So at a glance, we're looking at two factors: state governments cutting back on Medicare spending, and the recruitment and retention shortfalls in the military, which mean fewer soldiers and dependents in the military healthcare system.

The other interesting detail confirms an ongoing story: immigrants. The percentage of native born americans with coverage dropped by 40 basis points last year; but the percentage of the foreign born without coverage dropped twice as fast.

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