Moral Hazard Health Insurance USA 2021 During COVID
June 24, 2021

Moral Hazard Health Insurance USA 2021

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Topic: Moral Hazard Health Insurance USA 2021

Moral Hazard Health Insurance USA 2021

Moral Hazard Health Insurance USA 2021

The impact of COVID-19 on the insurance industry was felt strongly. The capital market volatility, weaker premiums, and asset risks have all impacted the insurance industry adversely. Moreover, the spike in job losses amid the first wave of the pandemic led to millions of workers losing their health insurance coverage. Read more about Moral Hazard Health Insurance USA 2021.

Moral Hazard Health Insurance USA 2021: While the unemployment rate is still to be 9.5 million below that of pre-pandemic times, the number of uninsured people did not increase to a dangerous level. Around 3 million people who lost their job-based coverage in 2020 went on to obtaining other forms of insurance like Medicaid, CHIP, or ACA.

How the health insurance coverage changed during COVID

During the years 2010-2014, the largest part of the American population gained insurance coverage due to the availability of health insurance marketplaces like ACA and Medicaid. However, the trend declined during the Trump administration as the uninsured rate started to increase among the nonelderly from 2016-2019.

As the pandemic hit, people feared that the uninsured rate might rise up more than at the time of the Great Recession, which was 18.2% at the highest level. In May 2020, The Economic Policy Institute estimated that around 16 million workers had lost their job-sponsored insurance, which counts for an adverse impact of COVID-19 on the health insurance sector.

Moral Hazard Health Insurance USA 2021

Moral Hazard Health Insurance USA 2021

The Urban Institute projected that about 5-9.5 million workers could become uninsured in its analysis the same month. However, the more recent study found a smaller number of net-increase in uninsured individuals. It turned out that the number of people losing their health insurance was lesser than what was expected.

The reasons for this Moral Hazard Health Insurance USA 2021, were that most of the employed people were not insured through their job, and the ones who lost their insurance turned towards other possibilities of ACA and Medicaid.

While this undoubtedly is good news, there is still a huge gap that needs to be covered. A lot of this was covered by ACA; affordability remained to be a barrier that was still to be overcome. This being one of the biggest problems prevented most Americans from seeking medical care and suffer negative consequences.

How can health insurance coverage be increased?

To counter the impact of COVID-19 on the insurance industry, the first and foremost thing to do is expand Medicaid availability in the other 12 states that are in dire need of it. People in these states are below the federal poverty level, and tending to these alternatives would help them in cutting off their health coverage costs.

In addition to the Moral Hazard Health Insurance USA 2021, federal funding can strongly back up the expansion of Medicaid in these states. Boosting Medicaid in these countries can generate a great flow of federal funding, the way it has been raising in the other states.

The next step to take is to improve the affordability of health insurance. The American Rescue Plan supports people to afford the insurance coverages for low- and middle-income families to close the gap. The plan includes several provisions for the unemployed and uninsured and is critical for the country to recover from the pandemic hit.

The fact that people could still suffer from severe infections from the virus in the years to come, it is vital to expand this activity. It aims to restore the pre-pandemic health levels extend coverage towards all Americans. So this concludes the topic for Moral Hazard Health Insurance USA 2021.

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