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Using matched data from the 1996 to 2004 Current Population Survey (CPS), the authors examine racial patterns in annual transitions into and out of health insurance coverage. They first decompose racial differences in static health insurance coverage rates into group differences in transition rates into and out of health insurance coverage. The low rate of health insurance coverage among African-Americans is due almost entirely to higher annual rates of losing health insurance than whites. Among the uninsured, African-Americans have similar rates of gaining health insurance in the following year as whites.
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