How The "Great Resignation" and COVID Unemployment Have Eroded the Employer Sponsored Insurance Model and Access to Healthcare

Am J Law Med. 2023 Dec;49(4):415-435. doi: 10.1017/amj.2024.1. Epub 2024 Apr 2.

Abstract

Pre-pandemic, employer-sponsored health insurance (ESI) covered 175 million workers and their dependents, the equivalent of 49% of the country's total population. ESI, a valuable tax preference to employer and employee alike, spurred worker job dependence on employers resulting in access to healthcare dependent upon continued employment. With the advent of the pandemic and the dramatic increase in unemployment, the number of uninsured increased by more than 2.7 million people. Then, unemployment proliferated further by an unprecedented exit from the workforce dubbed the "Great Resignation." Over 47 million Americans voluntarily quit their jobs in a movement characterized as a general labor strike. The pandemic opened the floodgates to workers' concerns about COVID safety in the workplace, wage stagnation despite increases in the cost of living, enduring job dissatisfaction, and increased demand for a remote-working environment. Data shows that the unemployed shifted to the Affordable Care Act marketplace or to the public payer option, Medicaid, for coverage. This shift signals a change, post-pandemic, away from the destabilizing system of access to care based on employment and unwanted job dependence and provides a policy argument favoring the more stabilizing influence of public insurance options in the health insurance market.

Keywords: Affordable Care Act; American Rescue Plan; COVID; employer-sponsored health insurance; great resignation.

MeSH terms

  • COVID-19*
  • Delivery of Health Care
  • Health Benefit Plans, Employee*
  • Humans
  • Insurance Coverage
  • Insurance, Health
  • Patient Protection and Affordable Care Act
  • Unemployment
  • United States