Nearly 3 in 10 Americans Lost Health Insurance Coverage in 2020, and More Than Half of Them Remain Uncovered Due to Cost Barriers

According to the most recent LowCostInsurance survey, 29 percent of Americans will lose health insurance coverage by 2020. More than half of these people have not obtained new coverage and are thus uninsured.

We polled over 2,000 people about their 2020 coverage and the most recent open enrollment period, and 45 percent of people were surprised by the high costs of their new policies. As a result, many people want to change the process. Some people, for example, want to better understand the plans or have more coverage options.

More than half of those who lost coverage in 2020 haven't replaced their health insurance

Almost one in ten (9%) people lost coverage as a result of a job loss and are now uninsured. Furthermore, half of Gen Z respondents said they had lost health insurance coverage at some point this year, the highest proportion of any age group.

Those who were laid off or furloughed as a result of the coronavirus pandemic had an especially high rate of losing health insurance coverage. In fact, 47 percent of those polled fell into this category. Furthermore, in 2020, 39 percent of people who were able to keep their job but had their hours or salary reduced lost health insurance coverage.

Those earning $100,000 or more per year, as well as those with a bachelor's degree, were the least likely to lose health insurance coverage in 2020, at 19% and 22%, respectively.

In our survey, 14 percent of parents with children under the age of 18 lost their insurance and continued to be uninsured, implying that the majority of their children were also uninsured. Similarly, 41 percent of parents earning less than $35,000 lost health insurance coverage in 2020.

The primary reason that consumers are choosing to go uninsured is premium or deductible costs

More than four in ten (42%) said they don't have enough money to cover deductibles or premiums.

Other reasons people are opting out of coverage include:

• Other costs to be prioritized (31 percent )
• I'm hoping to find a job that provides health insurance (20 percent )
• Due to anxiety, I haven't looked into it (16 percent )
• Marketplace too confusing (11%)

Surprisingly, women (51%) were more likely than men (34% ) to say they couldn't afford to pay for their health insurance policies.

On the other hand, some people were able to obtain new coverage and actively sought out a health insurance policy. When faced with the prospect of finding new insurance, 29% chose to enroll in an individual health insurance policy through their state's marketplace.

6 years after the creation of state health insurance marketplaces, individuals are still facing problems and confusion about what coverage they should choose

Almost two-thirds (64 percent) of people who attempted to access their health insurance marketplace through a state website or HealthCare.gov encountered some difficulty.

The majority (40 percent) of those who did experience problems with health insurance exchanges had difficulty determining which provider to use.

The amount of time it took to evaluate plans was a major issue for individuals. In fact, 75% of respondents reported that it took them more than an hour to select a policy and submit the accompanying application. Even more concerning, 7 percent said they spent seven or more hours completing the application process for marketplace health insurance.

More than a third of individuals want to see major changes to marketplaces, citing reasons such as coverage options

Thirty-eight percent of people who used the marketplace felt there weren't enough options for them, while 33 percent felt there were too many plans to choose from.

A reason for this could be the variety of types of health insurance available, such as different provider networks and levels of coverage (Catastrophic, Bronze, Silver, Gold and Platinum) (Catastrophic, Bronze, Silver, Gold and Platinum).

Applicants to the Marketplace also expressed concerns about policy costs. In fact, 45 percent of respondents felt they had spent more money than they had anticipated on their new health insurance policy. Furthermore, in our survey, younger people were more likely to say they overspent on marketplace health insurance compared to what they expected.

We also asked our respondents which policy they preferred because there will be a significant shift from employer-sponsored health care to marketplace coverage in 2020. In general, 40% of those who have had marketplace health insurance at some point preferred their employer-sponsored policy over the marketplace policy.

Marketplace health insurance help and suggestions

As evidenced by this survey and customer feedback, purchasing individual health insurance can be a confusing and intimidating process. However, understanding the fundamentals of these policies and what to look for can make your shopping experience more manageable.

First and foremost, the best health insurance policy will be one that is affordable for your budget and balances any potential health care costs you may incur during the plan year. For example, if you anticipate having high medical expenses, such as monthly prescriptions, a Silver or Gold policy with a lower deductible may be preferable.

Second, you should shop around for health insurance companies to find the best deal. Many insurers offer lower premiums, but fewer offer additional benefits such as gym membership discounts. In addition, some insurers have low rates but limited provider networks.

Methodology

LowCostInsurance hired Qualtrics to conduct an online survey of 2,051 consumers from December 17 to 21, 2020. Researchers reviewed all responses to ensure quality control, and the sample base was proportioned to represent the overall population.

Generations were defined as the following ages in 2020:

• Generation Z: 18 to 23
• Millennial: 24 to 39
• Generation X: 40 to 54
• Baby boomer: 55 to 74

Responses from the silent generation were also included in the survey (ages 75 and older). However, due to the small sample size for that age group, their responses were not included in the generational breakdowns.