29% of Americans Lost Their Health Insurance in 2020; More Than Half Remain Uninsured in 2021

Rhea-AI Summary

In 2020, 29% of Americans lost health insurance coverage, with 51% of Gen Z and 36% of Millennials affected. 47% of those laid off or furloughed lost their insurance. Cost remains the primary barrier for the over half of Americans who are uninsured in 2021, as 42% cite affordability issues. Additionally, 45% of health insurance marketplace users found costs higher than expected, with 64% facing issues during the purchasing process. The survey reveals a call for changes in the healthcare marketplace, yet respondents are divided on what those changes should be.

Positive

• The survey provides detailed insights into health insurance challenges faced by Americans, potentially guiding policy improvements.
• A significant portion of respondents (38%) indicated the need for more choices in the healthcare marketplace.

Negative

• A large percentage of Americans remain uninsured due to high costs, with 42% unable to afford premiums.
• 64% of respondents encountered issues while purchasing health insurance, indicating systemic problems in the marketplace.

NEW YORK, Jan. 14, 2021 /PRNewswire/ -- Nearly 3 in 10 Americans lost health insurance coverage in 2020, and more than half haven't bought new coverage and remain uninsured in 2021 according to a new ValuePenguin.com Healthcare Survey. The survey of over 2000 Americans, also found that 45% of Americans who shopped for health insurance during open enrollment were surprised by the high costs of their new policies, and many want major changes.

Key Findings:

• 29% percent Americans lost health insurance coverage at some point in 2020. Losing health insurance coverage was exceptionally high among Gen Z and Millennial Americans - 51% of Gen Zers and 36% of Millennials lost health insurance coverage in 2020.
• Losing health insurance coverage was exceptionally high for those who were laid off or furloughed due to the coronavirus pandemic. In fact, 47% of all survey respondents reported losing insurance coverage after being laid off furloughed. Additionally, 39% reported they were able to keep their job but had their hours or salary cut also lost health insurance coverage in 2020.
• The main reason so many Americans still don't have health insurance coverage is cost. Of those who still don't have coverage, 42% said they don't have enough money to afford premiums or the deductible, while 31% said they have other expenses they need to prioritize. Women (51%) were more likely than men (34%) to say they couldn't afford to pay for their health insurance policies.
• 45% percent of health insurance marketplace users said the cost of that health insurance was higher than they expected. Younger generations were most likely to say they spent more on marketplace health insurance than they thought they would.
• 64% of Americans who tried to purchase health insurance through their state's website or HealthCare.gov reported having some issue with the process. Of those who did encounter issues with health insurance exchanges, the most (40%) had difficulty figuring out which provider to use. 75% of respondents said it took them more than an hour to choose a policy and submit the accompanying application. And 7% said they spent seven or more hours completing the application process for marketplace health insurance.
• 1 in 3 Americans call for major changes to the healthcare marketplace but they aren't aligned on the changes they want. 38% of consumers who have used the health insurance marketplace think there aren't enough choices, but 33% feel there are too many choices. 59% like having choices, but 29% would prefer a single option. And 40% of those who have a marketplace health insurance policy said they liked their employer-sponsored policy better.

According to ValuePenguin.com Health Insurance expert Sterling Price, "As seen in this survey, purchasing individual health insurance can be a confusing and daunting process to undertake for many Americans." He adds, "Knowing some of the basics about these policies and what to look for can make your shopping experience more manageable. Your best health insurance will be a policy that you can afford, and balances any potential health care costs you may experience during the plan year."

To view the full report, visit: https://www.valuepenguin.com/health-insurance-marketplace-cuts

ValuePenguin.com commissioned Qualtrics to conduct an online survey of 2,051 consumers, fielded Dec. 17-21, 2020. The sample base was proportioned to represent the overall population, and all responses were reviewed by researchers to ensure quality control.

About ValuePenguin.com:. ValuePenguin.com and its parent company, LendingTree® (NASDAQ: TREE), have a common mission: to empower consumers with tools, information, and resources to help them make smarter, more informed financial decisions. For more information, please visit www.valuepenguin.com, like our Facebook page or follow us on Twitter @ValuePenguin. Additional Information: https://www.valuepenguin.com/health-insurance 

Media Contact:
Divya Sangam (Ms.)
646 693 8445
Divya@lendingtreenews.com

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SOURCE ValuePenguin.com

FAQ

What percentage of Americans lost health insurance coverage in 2020?

In 2020, 29% of Americans lost health insurance coverage.

How many Americans are uninsured in 2021 according to ValuePenguin's survey?

More than half of Americans remain uninsured in 2021.

What is the primary reason Americans do not have health insurance?

The main reason is cost, with 42% stating they cannot afford premiums or deductibles.

What percentage of marketplace users found health insurance costs higher than expected?

45% of health insurance marketplace users reported costs were higher than they expected.

What issues did Americans face when purchasing health insurance?

64% of Americans who tried to purchase health insurance reported having some issues with the process.

How many Americans want changes in the healthcare marketplace?

One in three Americans call for major changes to the healthcare marketplace.