The percentage of people who lacked health insurance coverage declined between 2014 and 2013, according to a Census Bureau report released late in 2015. This happened although there was no statistically significant change from 2013 in either real median household income or the official poverty rate during that time.
The percentage of people without health insurance coverage for the entire 2014 calendar year was 10.4 percent, down from 13.3 percent in 2013. The number of people without health insurance declined to 33.0 million from 41.8 million over the period.
Increasing the percentage of people who have health insurance can reduce cost-shifting. Cost-shifting occurs when healthcare providers build the cost of treating uninsured individuals into their overhead. This effectively passes these costs on to the insured, making their rates go up even higher.
At a certain point, health insurance becomes unaffordable for all but the sickest (and most likely to file a claim). When this happens, a “death spiral” occurs, leaving insurers at risk of not being able to pay claims. Reach out to USI for more information on medical insurance for your employees. As licensed brokers, we can help small businesses obtain affordable and appropriate coverage for your employees.