After Hitting Record Low, Uninsured Rates Climb: CDC

From Beckers

After hitting record lows in 2023, uninsured rates are beginning to rise again, according to new CDC data. 

According to CDC estimates published August 5, 8.2% of Americans were uninsured in the first quarter of 2024, up from 7.7% in the fourth quarter of 2023.

In the second quarter of 2023, the CDC recorded a record-low uninsured rate of 7.2%. Government estimates predict the uninsured rate will rise over the next decade, driven by Medicaid disenrollment and the expiration of ACA subsidies.

The CDC also said 27.1 million people were uninsured in the first quarter of 2024, up from 25.5 million in the fourth quarter of 2023.

The number of people under 65 with public coverage declined from 75.9 million in the fourth quarter of 2023 to 73.5 million in the first quarter of 2024. Federal agencies estimated insured rates would drop as states began disenrolling Medicaid enrollees for the first time since 2020.

Continuous coverage requirements in place during the COVID-19 pandemic helped drive uninsured rates to new lows. At least 24.8 million people have been disenrolled from Medicaid since March 2023, according to KFF.

Though the number of people with public coverage has decreased, the number of adults under 65 with private insurance was the same between the last quarter of 2023 and the first quarter of 2024, at 176.7 million.

ACA exchange enrollment increased to 16.6 million in the first quarter of 2024, up from 13.3 million in the last quarter of 2023. Federal agencies have worked to steer individuals losing Medicaid coverage to exchange plans.

Enhanced subsidies that offset the premiums for marketplace plans are set to expire at the end of 2025, unless Congress chooses to extend them.

Estimates from the Congressional Budget Office in June projected the uninsured rate will hit 8.9% by 2034.