While the spread of coronavirus is resulting in job losses around the world, it is a double blow for Americans: they are losing both their jobs and health insurance cover at the same time. Unlike other countries with a national health system framework, US citizens rely on private insurance – often included in their benefits package – and state programs to obtain healthcare.
According to GlobalData’s 2019 Global Banking and Payments Survey, 69% of US respondents indicated that they had health insurance in place in 2019. The uptake of health insurance policies is lowest among younger adults – the uptake among those aged 18–24 was 55%. Those without private cover are typically required to pay for medical expenses upfront, before receiving treatment.
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It is commonplace in the US to link private health insurance to an individual’s employment package as opposed to making contributions towards standalone policies. Cover linked to someone’s job can be extended to include their family. However, the practice of linking private health insurance coverage with a job leaves people vulnerable to not only a loss of income but also the prospect of becoming uninsured should they lose their jobs.
The coronavirus pandemic is creating a public health crisis in the US. Lockdowns and measures to curtail the spread of the virus have led to an upsurge in job losses. Data released by the US Department of Labor indicates that nearly 6.6 million citizens registered to claim unemployment benefits in the week ending March 28, 2020. Unemployment levels are at a record high, with the number of individuals filing for unemployment benefits being nearly ten times greater than the previous record from 1982.
As many lose their employment, fewer individuals will have health insurance or be able to afford medical treatment. Given that a significant proportion of individuals contracting COVID-19 need hospitalisation and/or intensive care, the cost of medical treatment will be prohibitive to many.
Meanwhile, 42% of US respondents either suffer from, or live with someone suffering from underlying health conditions that increase the risk associated with coronavirus exposure, according to the latest findings from our Coronavirus (COVID-19) Consumer Survey tracker. Furthermore, 77% of US respondents expect the coronavirus situation to worsen over the next month.
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By GlobalDataOnce the coronavirus situation comes under control, the lessons learned during the pandemic will shape Americans’ attitudes towards private health insurance. Provided that a universal healthcare system is not adopted in the US, it is likely that more Americans will consider having standalone health insurance policies than in the past.
