Health Insurance Articles

9 Million Americans Lose Health Insurance During Recession

2011-12-22

According to Cornell, Indiana, and Carnegie Melon Universities, about 9.3 million people have lost their health insurance coverage due to the current recession. The number is being used to solidify arguments that this recession is the second-largest in history. Economists from these universities found that the loss in health insurance was the result of unemployment. Unemployed, people who had previously been well covered with insurance were now suddenly left without any insurance. Although some of these individuals likely turned to individual health insurance, this product is often so expensive that the unemployed cannot afford it.

According to Cornell, the current recession is the longest and most extensive since 1933's Great Depression, topping even the recession of 2001. Thus, the Cornell Chronicle notes that around nine times as many Americans lost health insurance during the 2007-2009 recession as did during the 2011 recession. Although most of the people who lost health insurance were men, some women also suffered. Cornell notes that about 7.1 million men lost insurance and 2.2 women lost their coverage. Children, on the other hand, were more likely to gain insurance, as their unemployed parents applied for Medicaid and other insurance programs for the impoverished and unemployed.

Of course, the 9 million figure is only an estimate. Many more are likely uninsured or feeling the effects of reduced insurance thanks to the recession and other factors. Some recently unemployed may still be paying high prices for COBRA insurance, while others may have elected for coverage under a spouse's more expensive or less complete plan. The recession has also made lack of insurance a problem even for the employed. As more employers are being forced to cut costs, many are either downgrading or eliminating insurance coverage, meaning that even those who are employed are likely to be uninsured. They may also have to pay the hefty price for a supplementary policy.

What has the insurance crisis shown us? Other than the fact that recessions are more likely to impact white, college educated men in their mid-life years; the insurance crisis has suggested the importance of being ready. People who are ready for insurance loss can find new policies before large gaps occur in their coverage. Being ready means looking for individual health insurance or at least knowing how to search for adequate individual insurance and what payment arrangements for such insurance can be made.

The recession is not over, and the number of uninsured people is likely to climb from 9 million soon. However, individuals don't have to live in fear of losing their health insurance. While individual health insurance is more expensive, employees should know that it is an option for them.