Employer-Sponsored Coverage Stabilized And Uninsurance Declined In The Second Year Of The COVID-19 Pandemic

The health risks of COVID-19, combined with widespread economic instability in the US, spurred Congress to pass temporary measures to improve access to health insurance. Using data from the Household Pulse Survey, a high-frequency, population-based survey, we examined trends in health coverage during 2021 and early 2022 among nonelderly adults. We estimated that eight million people gained coverage during this period, primarily because of increases in Medicaid and other public coverage. Despite rising employment, rates of employer-sponsored coverage remained flat. In Medicaid expansion states, employment rates increased significantly among Medicaid enrollees. Our results suggest that when the public health emergency ends, many people currently enrolled in Medicaid might no longer be eligible, particularly in Medicaid expansion states. Policy makers and employers should be prepared to help people who lose Medicaid eligibility identify and navigate enrollment in alternative sources of health insurance, including both Affordable Care Act Marketplace and employer-sponsored coverage.

Automated summary

The passage of temporary measures in response to the health risks of COVID-19 and economic instability in the US led to increased access to health insurance. Analysis of data from the Household Pulse Survey revealed that approximately eight million individuals gained coverage between 2021 and early 2022, primarily through Medicaid and other public programs. Despite a rise in employment, employer-sponsored coverage rates remained unchanged. In states that expanded Medicaid, there was a significant increase in employment rates among Medicaid beneficiaries. Findings suggest that individuals currently enrolled in Medicaid in expansion states may lose eligibility once the public health emergency ends, necessitating support from policymakers and employers to navigate alternative health insurance options.