What are your options when you lose your employer-provided health insurance? An adviser weighs in

For tens of thousands of employees, the pandemic didn’t just cost them their job — it cost them all the perks that came with it.

Fifty-six percent of Americans who were laid off during the COVID-19 pandemic lost their employer-provided health insurance, according to an August survey conducted by Affordable Health Insurance. And of those employees, 81% are still uninsured, with the vast majority citing the cost of private health insurance as the reason.

But remaining uninsured can be just as costly — both physically and fiscally. A medical emergency would “very likely” financially devastate 59% of uninsured Americans, the survey found. And 56% of Americans who lost their health insurance are no longer taking doctor-prescribed medication, 46% are delaying planned medical procedures, 44% are not seeking treatment for chronic issues and 41% are no longer receiving mental health treatment.

To avoid these hurdles and get the care they need, uninsured individuals should tap into the benefits of health insurance advisers, who can find available options as well as help navigate confusing health insurance sites and resources, says healthcare insurance adviser Dr. Noor Ali.

Read more: What role do advisers play in finding solutions to rising healthcare costs?

“A lot of people just don't know they can work with a professional,” she says. “Just like there are financial advisers, there are health insurance advisers or health insurance agents and our services are at no cost to the consumers.”

The healthcare industry can be overwhelming for the most seasoned veteran, but for younger individuals, who make up 86% of those who are recently uninsured, it’s even more confusing. Employees have traditionally approached insurance by “checking a box” without really knowing what they’re signing up for, Dr. Ali says.

“Most Americans who get health insurance are used to getting health insurance from their employers,” Dr. Ali says. “It's just a number that comes out of their paycheck. They check a box once a year, they enroll in whatever benefits are provided and they forget about it.”

Read more: As gig work increases, ICHRAs might be the future of healthcare benefits

As health insurance needs change in response to the slow return of employees to traditional jobs and the growing prominence of the gig economy, Dr. Ali anticipates a greater need for advisers who can help individuals navigate these programs and get care that will fit their health and financial needs.

And despite the federal government upping their assistance programs — the Biden administration’s American Rescue Plan expanded Medicaid in some states — it’s still not enough to cover all uninsured Americans or meet their needs, according to Dr. Ali. Employees know they need insurance; now they just need more help navigating the system, a promising first step for advisers in the space, she says.

“Employees are just more aware and more intuitive of the value of health insurance,” Dr. Ali says. “It's a challenge and it's a difficult decision [for many Americans], but access has a lot to do with making someone feel empowered for choosing their healthcare coverage and not feeling scammed or conned or any of the negative connotations that are associated with the industry.”