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Health Insurance Rates Expected to Decrease in 2023 Following Recent Peak

Suzanne Wikle, a CLASP expert, provides insight into the upcoming release of poverty, income, and health insurance coverage statistics from the U.S. Census Bureau for the year 2023. This data will shed light on the economic hardships faced by children, youth, young adults, and families. The article highlights key areas of focus for CLASP experts, including the impending 2025 tax debate, raising labor standards, enacting new regulations to protect workers, and the importance of a fully funded child care system in ending poverty.

One significant aspect to be revealed in the upcoming Census data is the number of people in America who did not have health insurance in 2023. The previous two years showed record-low rates of uninsurance, driven by policy changes in response to the COVID-19 pandemic. However, with the expiration of certain provisions in 2023, there may have been an increase in uninsurance rates. States were allowed to disenroll individuals from Medicaid starting in April 2023, leading to a net loss of nine million people from Medicaid, including over four million children.

The article also discusses the impact of the pandemic-era actions on health insurance coverage. Between March 2020 and April 2023, states were prohibited from disenrolling individuals from Medicaid, and tax credits to subsidize ACA Marketplace coverage were increased. This led to a significant increase in health insurance rates. However, as states resumed normal operations for Medicaid in 2023, many individuals lost coverage. The upcoming Census data will provide more insight into how many of those who lost Medicaid coverage gained other forms of coverage.

Marketplace enrollment reached a new high in 2023, with 16.4 million enrollments. This growth was attributed to enhanced tax credits that made Marketplace insurance options more affordable. However, the article notes that the record-high rate of insurance coverage is at risk due to the end of the COVID-era Medicaid continuous coverage provision and the scheduled end of enhanced subsidies for Marketplace plans in December 2025. This could result in more individuals becoming uninsured.

In conclusion, the article highlights the importance of the upcoming Census data in understanding the impact of policy changes on health insurance coverage in America. It emphasizes the need for continued efforts to ensure access to affordable health insurance for all individuals, especially in the face of looming policy debates in 2025. The article serves as a call to action to prioritize investments in health insurance, child tax credits, and other critical supports to reduce poverty and benefit society as a whole.

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