Low Declines in Employer-Sponsored Insurance Compared to Job Losses

While employment rates fell 6.2% from March to September, enrollment in the fully insured group market fell just 1.5%. According to the Kaiser Family Foundation (KFF), there are several possible explanations for the relatively modest drop in employer-based coverage despite massive job losses. First, many of those who lost their jobs were not likely to have been enrolled in employment-based coverage; lower wage workers are less likely to be covered. Also, job losses have been highest in industries with lower coverage offer rates, such as retail, service, and hospitality. 

Second, many people who lost their jobs may have retained health coverage temporarily. A number of employers have kept furloughed or laid off workers enrolled in their plan at least in the short term. In addition, a likely small number of permanently laid off employees may have elected COBRA, which would be classified as group coverage. 

Employment Rates
Employment rates are starting to recover, but a larger share of people filing unemployment claims say their job loss is permanent compared to earlier in the pandemic, suggesting that there may be more coverage loss to come, according to KFF. On the bright side, a study by Monster.com reveals that 82% of US employers surveyed say they plan to hire in 2021.