There are more than 200,000 people in central Texas who do not have health insurance. Many of these are children. The number of uninsured without health insurance rises and falls for a variety of reasons, but the state of the economy is undoubtedly the most significant factor. The economic downturn combined with escalating health care costs, have dimmed prospects for reducing the number of the uninsured. Figures show that at least 2.2 million Americans lost their health insurance last year due to layoffs. In 2003 there were 5,222 layoffs in the Greater Austin Area alone.

A study by the Commonwealth Fund indicates that unemployment leads to loss of health insurance – 37% of workers who lose their jobs also lose their health coverage.