Millions of Americans Lost Health Coverage During 2020. Will 2021 Be Any Better?
The pandemic has certainly put a spotlight on our personal health. While 77% of patients use online reviews when finding a new healthcare provider, many of us have been taking additional steps to reduce our chances of becoming ill. Avoiding mass gatherings, wearing masks in public, and frequent hand-washing can help us stop the spread of COVID-19 and minimize the likelihood of contracting other diseases. And while your motivation here might be to protect your loved ones by staying out of healthcare facilities, there may be a financial motive to staying well — especially if you’re one of the millions of Americans who lost healthcare coverage last year.
Around 42% of employed underwriters worked with direct insurance carriers in 2018. But in 2020, the nation’s need for affordable healthcare increased due to the ongoing pandemic. Unfortunately, countless residents lost their coverage just when they needed it most. According to a recent study from ValuePenguin, 29% of Americans lost their insurance coverage last year. Considering how many U.S. workers were laid off in 2020, that doesn’t come as a huge surprise. In fact, around 47% of those who lost insurance coverage last year were either furloughed or laid off, while 39% said they lost coverage because their hours or salaries were cut. But what may shock some is the fact that over half of those who lost their coverage still remain uninsured, primarily due to cost. Of those who still have no coverage, 42% said they don’t have the funds to afford deductibles or monthly premiums, while 31% they have more pressing expenditures to prioritize. Since 45% of health insurance marketplace users say the costs of health insurance were higher than expected, it makes sense that many feel they’re unable to afford coverage.
Perhaps most troubling was the finding that 14% of parents with minor children who lost their insurance last year are still uncovered. While it’s best to schedule orthodontist visits for kids by the time they turn seven, a lack of coverage may mean that children have to go without preventative healthcare services and even essential treatments.
As of June 2020, some 14.6 million Americans had lost their employer-sponsored coverage, according to MarketWatch. ValuePenguin’s findings, which were gathered in December 2020, show that nearly three in 10 Americans still don’t have coverage going into 2020. These findings stand in stark contrast to a December report from Marketplace.org, which claims that approximately the same number of Americans signed up for healthcare coverage this year as did last year. Karen Pollitz of the Kaiser Family Foundation cites that the reason for this is that “most of the people who have lost jobs during the pandemic didn’t have health insurance to begin with.” And while retail and restaurant employees, many of whom were adversely impacted by pandemic restrictions, may not have had employer-sponsored coverage, it’s unclear as to whether early indicators and hypotheses will hold.
One thing is certain, however: many Americans don’t realize they may qualify for lower-cost coverage. Because marketing related to open enrollment was at an all-time low, thanks to the Trump administration, there are potentially millions of eligible residents who don’t realize they qualify for Medicaid or health insurance subsidies. And since the health insurance marketplace can be an overwhelming and confusing place, it’s possible that many assumed the hassle wouldn’t be worth it — especially if costs were too high to handle.
Now that the Open Enrollment period has ended, it’s not yet clear whether Americans in need will have the healthcare coverage they deserve. But if the incoming administration makes affordable healthcare a priority, it’s possible that coverage could be restored for millions.
