The Uninsured Rate Is Rising. Here’s How To Protect Yourself

Medical insurance may be expensive in the U.S., but it’s usually a better deal than going without it. In a health care system where the average cost of childbirth — perhaps the most definitionally "routine" procedure on earth — is more than $13,000 without insurance, even a frustratingly high monthly premium is likely worth it.

But for some people, the average health insurance cost of $584 per month may simply not be feasible. In fact, according to the latest National Health Interview Survey by the National Center for Health Statistics (NCHS), the uninsured rate rose substantially between the fourth quarter of 2023 (when 7.7% of the population was uninsured) and the first quarter of 2024 (when it rose to 8.2%). Unsurprisingly, the trend was more pronounced in populations below the federal poverty line.

As health care costs increase, so do uninsured rates

If you’re insured through your employer, increases in the cost of health insurance may be less noticeable. For many employees, premiums are deducted before a paycheck is cut, which can feel less financially painful than manually making a payment.

But Americans insured through the private market are likely to anticipate cost increases each year, even as coverage levels remain similar. According to ValuePenguin’s own analysis, at the national level, the cost of private insurance increased 4% between 2023 and 2024. According to reporting by KFF — which had anticipated a median increase of 6% when the study was published in August of last year — insurers cited inflation, the high cost of treatments related to COVID-19, and even the proliferation of costly semaglutide medications like Ozempic as reasons for the rise.

Given the high costs of private insurance, it makes sense that those below the federal poverty level were nearly twice as likely (15.7%) to be uninsured as the general population (8.2%) in the first quarter of 2024. Indeed, this population also saw a steeper increase: The uninsured rate is up from 13.9% in the fourth quarter of 2023.

However, even those earning between 200% and 400% of the federal poverty level saw a spike in uninsured rates over the change of the calendar year; in the third quarter of 2023, this population had a 7.0% uninsured rate; in the first quarter of 2024, it’s 8.5%. Only for those earning more than 400% of the federal poverty level did the uninsured rate fall during that time.

Medicaid unwinding means more go uninsured

Another factor playing a part in rising uninsurance: the unwinding of the Medicaid continuous enrollment provision enacted in the 2020 Families First Coronavirus Response Act (FFCRA). During the pandemic, continuous enrollment helped ensure that people on Medicaid would not lose coverage in the thick of a public health emergency.

However, the Consolidated Appropriations Act signed in December 2022 ended this provision, with the unwinding beginning on April 1, 2023. As of August 1, more than 24.8 million recent Medicaid recipients across the country have been disenrolled. Figures vary by state, but Texas, California, New York and Florida have experienced the highest number of disenrollments.

While some people who’ve been disenrolled from Medicaid may have other health insurance to fall back on, others may find themselves suddenly uninsured. While those who’ve lost Medicaid are eligible to apply for health coverage through the marketplace, some may not know how — or want to go through the expense and trouble.

Health insurance matters. Here’s how to find the right coverage

Health insurance might be confusing and expensive, but it’s also really important. According to a 2008 study by Families USA, a health care advocacy nonprofit, more than than 26,000 Americans die each year due to a lack of health insurance — a figure that’s likely risen over the last decade and a half.

Even if you’re part of a low income household, you can find health coverage that can work for your budget. In most states, if you earn less than about $20,000, you could qualify for Medicaid — and even if you earn more than that, you may qualify for a premium tax credit on an Obamacare plan.

Even a cheap health insurance plan is likely better than no plan at all. Plus, shopping around can really help. Simply by choosing a different plan, you could save $100 per month or more for similar coverage. That’s an extra $1,200 per year to spend on living the best version of that life you’re protecting.