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  • The expiration of COVID-19-related provisions requiring states to keep residents enrolled in Medicaid has cast a dark shadow over Texas, leaving an estimated 2.1 million individuals without health insurance. Texas, already grappling with the highest number of uninsured individuals in the country, has seen a drastic surge in the number of people being removed from coverage compared to any other state.

    The Human Toll

    The fallout of this mass loss of health coverage is dire. The state’s most vulnerable residents are now facing barriers accessing essential health care services. Not only has this negatively impacted individuals and families but also the state’s economy and fiscal health.

    Impact On Health Care Access

    The primary reason to maintain and expand health insurance access is to ensure that the state’s most vulnerable residents can obtain the care they need, thereby improving the overall well-being of individuals and families. With millions now stripped of their health insurance, accessing necessary medical care has become an increasingly arduous task, leading to detrimental effects on morbidity and mortality outcomes. In addition, the decreased productivity associated with adverse health outcomes is expected to take a toll on the state’s economic activity.

    Decrease In Health-Related Spending

    With 2.1 million fewer Texans covered by health insurance, health-related spending is expected to decrease, reducing business activity across communities and the broader economy. This decrease in spending not only affects the health care sector but also has far-reaching implications for various other industries and businesses.

    Rise In Uncompensated Care And Insurance Premiums

    Due to the surge in uninsured individuals, uncompensated care is no longer just a future possibility; it’s an imminent threat. This will place an unbearable strain on our health care providers, leading to a subsequent increase in insurance premiums. This exacerbates the financial burden on both individuals and the state’s health care system, creating a crisis that demands immediate attention.

    Economic Costs

    The Perryman Group’s estimates paint a picture of the economic costs of the mass loss of health insurance coverage. If this situation persists, the state will lose $58.9 billion in annual gross product and almost 509,200 jobs, factoring in multiplier effects. These economic harms are not confined to specific regions but are felt across the entire state, casting a wide net of distress.

    A Call To Action

    The repercussions of 2.1 million Texans losing their health insurance are far-reaching, encompassing human suffering and economic distress. Urgent and decisive action is needed to address this crisis and prevent it from spiraling further out of control.

    Policy Interventions

    Policy measures aimed at reinstating and expanding health insurance access for the affected individuals must be prioritized. These measures should focus on ensuring health care remains accessible and affordable for all Texans, regardless of their socioeconomic status.

    In addition, collaboration between government agencies, health care providers, and community organizations is essential to formulate comprehensive strategies that can effectively mitigate the impact of the mass loss of health insurance coverage.

    A Ray Of Hope For Small Business Owners In Texas

    In the midst of a health care and economic crisis that has left millions of Texans uninsured, there is light at the end of the tunnel – Group Management Services (GMS), a professional employer organization (PEO). As experts in providing comprehensive HR solutions, GMS can play a pivotal role in helping these businesses navigate through these challenging times.

    As a small business owner, you must step in now more than ever to support your employees. By offering tailored employee benefits management, including affordable health insurance options, GMS helps small businesses attract and retain talent. GMS is the only PEO that provides an in-house master health plan that helps you avoid large swings in usage, trends, and renewal rates. In addition, our benefits experts provide guidance on how to best utilize your plans, maintain compliance, and stay on top of ever-changing rules and regulations.

    At the end of the day, you want what’s best for your employees. Partnering with GMS is not just supportive; it’s transformative. Contact our experts today to learn more.

  • President Joe Biden announced that the uninsured rate reached 8%, the lowest rate in U.S. history. Over 5.2 million individuals have gained health coverage since 2020. This news came shortly after the Democratic party released an extensive deal focusing on climate change, health care, and tax. This deal extended generous federal subsidies for people who buy private health insurance, which is credited with driving down the uninsured rates.

    In addition, Democrats have also proposed spending $64 billion to extend these price breaks for three more years. Originally set to expire this year, Senator Joe Manchin III of West Virginia agreed to extend the high subsidies until 2025. If Democrats can pass the package on a party-line vote in the Senate, this deal will be extended.

    The initial fall in uninsured Americans began in 2021 when Congress and President Biden signed off on a $1.9 trillion coronavirus relief bill. This bill ultimately lowered premiums and out-of-pocket costs for new or returning customers purchasing plans through the Affordable Care Act’s (ACA) private health insurance markets.

    Additional Actions

    After the ACA was enacted in 2010, the number of uninsured Americans began decreasing. The ACA expanded Medicaid and provided health insurance to individuals who lacked job-based coverage through a mix of subsidized private plans. It also produced improved health outcomes, better access to care, and improved financial security for families.

    Additional actions that are being taken to decrease the uninsured rate include expanding Medicaid under Obamacare in all states. Officials are also providing a path to legal status for unlawful migrants living in the U.S., so they can qualify for insurance programs.

    Furthermore, President Biden lobbied Congress to pass signature legislation to protect Obamacare gains. This legislation would lower healthcare costs and make health insurance coverage more accessible for families across the country.

    How GMS Plays A Part

    Although there is a lower uninsured rate, roughly 26.4 million individuals remain uninsured. If you’re an individual who is trying to find insurance, you’ve come to the right place. GMS now offers individuals voluntary benefits at a lower monthly rate. If you don’t receive benefits from your employer, GMS has you covered. Contact us today to learn more.