Report: 1.6 Million Texans Lost Job-Based Health Insurance During Pandemic

For Immediate Release
Contact: Peter Clark, 512-473-2274

Advocates Urge State Leaders to Improve Access to Health Insurance as Part of State’s Coronavirus Strategy

Austin - A new report by the Kaiser Family Foundation found that 1.6 million Texans have lost employer-sponsored health insurance during the coronavirus pandemic, highlighting the need for Texas leaders to address health insurance as part of the state’s response to coronavirus. Prior to the pandemic, Texas already had the worst uninsured rate in the nation for adults, children, and women of childbearing age, a challenge that included Texans of all backgrounds and communities. 

During the 2019 legislative session, lawmakers did not pass any bills to reduce the state’s uninsured rate. However, Texas House Speaker Dennis Bonnen and Lt. Governor Dan Patrick did signal their interest in the subject by directing legislative committees to study the issue prior to the 2021 legislative session.

Medicaid Expansion

The new report estimates that 382,000 additional Texas adults who lost job-based insurance will be in the “coverage gap” by January 2021, meaning they are uninsured because state leaders have not accepted Medicaid expansion funding to cover low-wage adults. (See Table 2 of the report appendix). In addition to the 382,000, there were already 761,000 uninsured Texas adults, most of them employed, with incomes below poverty who are also excluded from Medicaid as part of the coverage gap. 

The report found that 30,000 Texans who recently lost jobs immediately entered the coverage gap. The number could have been much larger, but a temporary increase in pandemic unemployment benefits is keeping their income above the poverty line for now. The additional unemployment payments end in July.

A growing number of Texans, including the 12 Democrats in the Texas Senate, are calling on Governor Greg Abbott to expand Medicaid.

“Now is the time for Governor Abbott to reduce the uninsured rate, help Texans who have lost their jobs, and pump billions of federal dollars into our struggling Texas economy by expanding Medicaid,” said Laura Guerra-Cardus, Deputy Director of Children’s Defense Fund-Texas. “Medicaid expansion should be part of the state’s strategy both for dealing with the recession and for containing the pandemic.”

Insurance and Subsidies Available on HealthCare.gov

The report estimates that 881,000 Texans who lost employer-based coverage are eligible to receive financial assistance to purchase reduced-price insurance on HealthCare.gov. However, they must sign up for insurance within 60 days of losing their insurance. Texas Attorney General Ken Paxton, with the backing of the White House, is currently suing to eliminate this health care option and other elements of the Affordable Care Act (ACA).

“If you recently lost your job, we encourage you to check out your options on HealthCare.gov,” said Stacey Pogue, Senior Policy Analyst at the Center for Public Policy Priorities. “We are deeply concerned that Texas leaders and the White House are working to cut off this health insurance option, eliminate protections for pre-existing conditions, and overturn other health benefits under the ACA. We call on them to end this attack on our health care.”

Children’s Medicaid

The report estimates that 6.1 million children nationwide lost employer-based insurance, with 5.5 million eligible for either Medicaid or the Children’s Health Insurance Program (CHIP). The report did not specify the number of children in Texas. The Children’s Health Coverage Coalition recently wrote to state leaders to thank them for addressing children’s health care while under a state of emergency and to request several steps to ensure that children who are eligible for Medicaid insurance and CHIP are able to enroll, stay enrolled, and successfully use their insurance on an ongoing basis. For example, the Coalition urged state leaders to permanently end the use of inaccurate mid-year eligibility reviews in Children’s Medicaid that mistakenly remove eligible children from health coverage. The Coalition urged Texas leaders to rely on the state’s accurate annual eligibility evaluations, a step the state has temporarily taken during the pandemic.

“We appreciate that Texas leaders have taken initial steps to protect health insurance for kids during the pandemic, but there’s more work to do,” said Katie Mitten, Health Policy Associate at Texans Care for Children. “As families lose their health insurance and kids miss doctor's appointments, this is the time to make sure that eligible kids can stay enrolled in their Medicaid insurance.”

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