One of the biggest issues in America today is the lack of health insurance by a huge portion of the population. This was a huge issue in the election and it continues to be a big deal today. With that in mind, it’s important to consider how the economic crisis has impacted the health insurance world. It has most certainly contributed to the lack of health insurance, especially among a certain sector of the working population. So how specifically has the economic downturn contributed to the lack of health insurance?

Small business owners lack health insurance because of the economic downturn

One of the things that you should remember is that not every person works for a company. Some people own their own businesses and they have to make the numbers work each and every year. For these people, purchasing health insurance is something that should be a given. Though it should be a given, this isn’t necessarily true because the economic downturn has made it difficult. When they have to cut corners, one of the easiest things to eliminate is health insurance. It’s just a fact of life that’s come with the struggling economy.

Bigger businesses are cutting their employee benefit packages

Another way that the economic downturn has contributed to the lack of health insurance has to do with those companies that actually provide benefits to their employees. These companies provide benefit packages because they want to attract the best employees. With things getting tough, some of them are no longer able to offer full health insurance coverage, though. As a result, these workers don’t have the coverage that they might have otherwise enjoyed. Had the economy been in good shape, these people would have enjoyed employer-provided plans.

As the unemployment rate goes up, there is somewhat of a domino effect. Jobs are scarcer and those that are available are cutting costs by getting rid of benefits, including health insurance. When this happens, people are often forced to turn to public programs. However, with less taxes, cutbacks are necessary, and lapses in coverage results.

Where the Funding Comes From

No public program operates without funding. It has to come from somewhere. Most public programs receive funding from various taxes, including income tax. When people aren’t making income, they aren’t paying taxes. For the first time in their lives, many workers are falling below the poverty line and not paying taxes. Businesses are also losing money and are a huge source of tax funding. This is really affecting public programs. The need is greater, yet there is less to go around.

Focusing on Health Care

There is currently a huge focus on health care, the costs involved and the problems that need to be fixed. Unfortunately, there doesn’t seem to be a clear compromise coming to the forefront. Some people are advocating a completely public option, but that needs funding, which the government is sorely lacking. Others support a completely hands off approach. Unfortunately, a good portion of citizens count of the safety net that public programs provide. By removing that safety net, resources will become even more stretched, resulting in people who need care falling through the cracks. Optimists maintain that there is a way to compromise and find the best solution. It will likely be somewhere between the extremes.

The fact is that the answers aren’t always easy. The economy is hurting and everyone is feeling it. Public programs are having to cut budgets just to stay alive. People are also making big changes in their lifestyles. This has made health insurance harder to get and harder to maintain. Hopefully, things will soon start looking up and better compromises will come to light.