Number of Uninsured Americans Increased by 3M+

The percentage of U.S. adults without health insurance reached 12.2% at the end of 2017, an increase of 1.3% compared to the record low of 10.9% in fourth quarter 2016, according to Gallup-Sharecare Well-Being Index. The increase represents an estimated 3.2 million Americans and is the largest single-year upswing Gallup and Sharecare have measured since beginning to track the rate in 2008, including the period before the Affordable Care Act (ACA) went into effect.

Gallup attributes the increase to several factors, including fewer insurance companies offering insurance through exchanges; the cost of plans for consumers; and media coverage on efforts to repeal ACA, which may have encouraged many consumers to doubt whether the government would enforce the penalty for not having insurance.

The uninsured rate rose for all demographic groups in 2017, with the exception of those aged 65 and older, all of whom qualify for Medicare coverage. The largest increase occurred among young adults, blacks, Hispanics and low-income Americans. It’s important to note the uninsured rate among adults aged 18-25 rose by 2%. This group serves a critical function in the insured market because their minimal usage helps offset healthcare costs of older Americans.

Gallup speculates that the uninsured rate will rise further in the years ahead, primarily because President Trump’s new tax bill repeals the penalty or individual mandate, which fines Americans for not having insurance. As a result, many consumers, particularly young adults, will forgo health coverage, which will drive up premiums even more, making coverage too expensive for many.

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